Starting a new business or already have one? Checkout for different subsidies by TN govt.!

Tamil Nadu government is providing some subsidies to upgrade MSME sector as well as to garner more employment in the said sector. Below is given a list of subsidies that you can avail now if you are an entrepreneur in Tamil Nadu.

Subsidies for Micro Manufacturing Enterprises-

  • TN government is providing Capital Subsidy at the rate of 15% to up till 25%on the value of plant and machinery to boost up the MSME sector as well as to improve the general economic condition of them as well. The maximum amount limit of subsidy is Rs 3.75 lakh.
  • They are also providing low power tariff subsidy at 20%for the first 3 years of business (means from the date of starting of business or from the date of power connection.
  • 100 % reimbursement subsidy on the total value of VAT (Value Added tax) the entrepreneurs paid for the first 6 years of business. Also, 100% reimbursement of the investments they made in plant will also be paid on quarterly basis.
  • The entrepreneurs would also be exempted from stamp duty

Subsidies for industrially backward blocs and agriculture based enterprises-

  • Capital Subsidy of 25% is being provided on the value of machines and plant to the entrepreneurs with a maximum amount limit of Rs 30 lakh
  • Apart from that an entrepreneur will get another additional5% of subsidy if he/she employs 25 workers for 3 years within the first 5 years of starting the business. The amount will be of Rs5 lakh
  • If your business is eco-friendly and promotes cleaner technologies then you are eligible to get additional25% capital subsidy provided you get a certificate from Tamil Nadu Pollution Control Board stating the same. The amount will be of Rs 3lakh.
  • A business is entitled to another 5% of additional capital subsidy on the value of machines and plant if the business is set by women, differently abled, SC/ST and transgender entrepreneurs. The maximum amount is Rs2 lakh
  • They are also providing low power tariff subsidy at 20%for the first 3 years of business (means from the date of starting of business or from the date of power connection.

Special Capital Subsidy for Thrust Sector Enterprises

A special capital subsidy is provided at the rate of 25% on eligible plant and machines amounting at a maximum of Rs. 30 lakh to thrust sector which includes Electrical and Electronic Industry, Leather and Leather goods, Automobile parts, Pharmaceuticals, Solar Energy Equipment, Gold and Diamond Jewelry for exports, Pollution Control equipments, Sports Goods and Accessories, Cost effective building materials, Readymade Garments, Food Processing, Plastic and Rubber Industries.

Generator Subsidy –

Business enterprises in MSME sector which purchase Generator sets up to 320 KVA capacity are eligible for a Generator Subsidy at 25% of generator cost with a maximum of Rs.5 lakh.

Back-ended Interest Subsidy-

Enterprises who have obtained loan of Rs 1 crore for technology up-gradation are entitled for a back-ended interest subsidy of 3% rate with a maximum amount being limited to Rs 10 lakh. The duration of this interest subsidy is for 5 years.

Schemes for Technology Development-

Tamil Nadu state government gives support to enterprises in MSME sector for technology up-gradation through various schemes namely-

  1. Entrepreneurs can avail for 50% subsidy on the cost of filling patent with the amount limitation of Rs 2 lakh per year.
  2. Also, there is a provision in which they can either get 50% subsidy for trade mark registration or Rs 25,000/- whichever is of less amount.
  3. Establishment of a Technology Development Fund to develop clean and energy efficient technology.
  4. Entrepreneurs can also get assistance to create Centers of Excellence and Technology Business Incubators for introducing new production technology. The amount would be Rs 50lakh per incubator/center of excellence.

How to avail-

These subsidies are generally either provided by SIDBI or TIIC. To apply for TIIC capital subsidy click here.

Source: MSME Policy Note 2014-2015

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