Tamilnadu Industrial Policy

Tamilnadu Industrial Policy

The Vision Tamil Nadu 2023 identifies manufacturing as one among the ten thrust areas for the acceleration of economy and achievement of various long term goals. This will increase the footprint of high-value-addition activities in the State, in line with its natural and human endowments, and more importantly, enhance the level of direct and indirect employment. A highly developed manufacturing sector necessarily needs a dynamic and vibrant MSME sector. One of the strategic initiatives underlying Vision Tamil Nadu 2023 is to boost the creation and sustenance of several MSME clusters across the State. This will have the dual benefit of geographically diversified growth in the State and high employment generation, the later being a characteristic of the MSME sector.

Realizing the importance of Industries’ role in the growth of Economy, the Govt. has provided the following incentives and concessions

Sl. No.	Incentive / Subsidy	Rate of Subsidy	Max Limit	Eligible for	Duration / Installments
1	Capital Subsidy	25% of P&M	25 Lakhs	Micro Enterprises in all areas (New & Expansion)
		25% of P&M	150 Lakhs	Small & Medium Industries in 254 Industrially Backward Areas (New & Expansion)	3 installments
		25% of P&M	150 Lakhs	Agro based Small and Medium Industries in all areas (New & Expansion)	3 installments
2	Additional Capital Subsidy	10% of P&M	5 Lakhs	Micro Enterprises in all areas(New & Expansion)
3	Additional Capital Subsidy for SC/ST, Differently Abled & Women	5% of P&M	5 Lakhs	Micro Enterprises in all areas (New only)
		5% of P&M	5 Lakhs	Small & Medium Industries in 254 Industrially Backward Areas (New only)
		5% of P&M	5 Lakhs	Agro based Small and Medium Industries in all areas (New only)
4	Additional Capital Subsidy for Eco-Friendly Technologies	25% of Eco Technology Investment	10 Lakhs	Micro Enterprises in all areas (New & Existing)
		25% of Eco Technology Investment	10 Lakhs	Small & Medium Industries in 254 Industrially Backward Areas (New & Existing)
		25% of Eco Technology Investment	10 Lakhs	Agro based Small and Medium Industries in all areas (New & Existing)
5	Additional Capital Subsidy E- Vehicle component & Charging Infra	20%	10 Lakhs	Micro, Small & Medium Enterprises in all areas (New & Expansion)
6	Incentive for scaling up	5% of P&M	25 Lakhs	Micro & Small Enterprises in all areas (Expansion only)
7	Low Tension Power Tariff Subsidy	20% on Power Consumption	-	Micro industries in all areas (New & Expansion)	36 Months
8	Special Capital Subsidy for Thrust Sectors	25% of P&M	150 Lakhs	Micro, Small & Medium Enterprises in all areas (New & Expansion)	3 installments
9	Generator Subsidy	25% of cost of Generator (320 KV)	5 Lakhs	Micro industries in rural feeder areas (New & Expansion)
10	Interest Subsidy - Technology Ugradation	5% of Interest on Term Loan	25 Lakhs	Micro, Small & Medium Enterprises in all areas (New & Expansion)	5 years
11	Interest Subsidy - CGTMSE	5% of Interest on Term Loan	20 Lakhs	Micro, Small & Medium Enterprises in all areas (New & Expansion)	5 years
12	Interest Subsidy - Electric Vehicles Related	6% of Interest on Term Loan from TIIC	-	Medium Enterprises in all areas
13	Unemployed Youth Employment Generation Program (UYEGP)	25% of Project Cost	2.5 Lakhs	Age: 18 to 45 years Education: 8th Std & Above
14	New Enterprise Cum Entrepreneurship Development Scheme (NEEDS)	25% on Project cost 3% Interest Subvention	50 Lakhs	Age: 21 to 35 years (General Category) Age: 21 to 45 years (Special Category) Education: Degree, Diploma, ITI
15	Stamp Duty Exemption	100%		Micro Enterprises in all areas (New & Expansion)
16	Stamp Duty Exemption	50%		Micro & small enterprises in Transidco / Govt Ind estates / Pvt Ind estates

Thrust Areas

1. Electrical and Electronics Industries
2. Leather and Leather Goods
3. Auto Parts and Components
4. Drugs, Pharmaceuticals and Nutraceuticals
5. Solar Energy Equipment
6. Gold / Diamond Jewellery for Exports
7. Pollution Control Equipment
8. Sports Goods and Accessories
9. Cost-effective Building Materials
10. Readymade Garments
11. Food Processing
12. Plastic (except ‘one-time use and throw away plastics’)
13. Rubber
14. Alternate Products to ‘one-time use and throw away plastics’
15. Electric Vehicle Components, Charging Infrastructure and Components
16. Medical Devices, Equipment and Components
17. Technical Textiles and Medical Textiles
18. Aero Space, Defence Applications and Components
19. Electronic System Design and Manufacturing
20. Bio Technology
21. Petro Chemicals and Speciality Chemicals
22. Industry 4.0
23. Electronic Waste Processing

Ineligible Activities / Industries

1. Sugar
2. Distilleries, Brewery and Malt Extraction
3. Units utilizing Molasses/rectified spirit/de-natured spirit as raw material for
4. manufacture of potable alcohol.
5. Fertiliser (except bio-fertilisers)
6. Mining and Quarrying
7. Iron and Steels Smelting
8. Beedies/Cigarettes/Cigars/Gutka and Tobacco based products
9. All types of Saw Mills
10. All Micro, Small & Medium Service Enterprises (for certain type of incentives)
11. Cement
12. Aluminium Smelting
13. Calcium Carbide
14. Slaughter House
15. Re-packing of Drugs/Medicine/Chemical, without any processing or value addition
16. Azoic/Reactive Dyes
17. Fire Crackers
18. Industries manufacturing and or utilizing Ozone depleting substances
19. Poultry
20. Cyanide
21. Caustic Soda
22. Potassium Chloride
23. Nylon Fibre
24. Rayon Fibre
25. Polyester Fibre
26. One time use and throw away plastics
27. Any other enterprise/activity as may be notified by Government

Our Unique Services

• Preparation of Detailed Project Reports (DPR)
• Layout Drawings
• Facilitating various permissions required from various Govt. Departments
• Error free application processing for various subsidies and incentives
• Facilitating the arrangement of subsidies and incentives from Govt. Departments
• Advisory on Purchase of Machinery / Technology and Civil works