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 |
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|
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 |
|
|
14 |
New Enterprise Cum Entrepreneurship Development Scheme (NEEDS) |
25% on Project cost |
50 Lakhs |
Age: 21 to 35 years (General Category) |
|
|
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
- Electrical and Electronics Industries
- Leather and Leather Goods
- Auto Parts and Components
- Drugs, Pharmaceuticals and Nutraceuticals
- Solar Energy Equipment
- Gold / Diamond Jewellery for Exports
- Pollution Control Equipment
- Sports Goods and Accessories
- Cost-effective Building Materials
- Readymade Garments
- Food Processing
- Plastic (except ‘one-time use and throw away plastics’)
- Rubber
- Alternate Products to ‘one-time use and throw away plastics’
- Electric Vehicle Components, Charging Infrastructure and Components
- Medical Devices, Equipment and Components
- Technical Textiles and Medical Textiles
- Aero Space, Defence Applications and Components
- Electronic System Design and Manufacturing
- Bio Technology
- Petro Chemicals and Speciality Chemicals
- Industry 4.0
- Electronic Waste Processing
Ineligible Activities / Industries
- Sugar
- Distilleries, Brewery and Malt Extraction
- Units utilizing Molasses/rectified spirit/de-natured spirit as raw material for
- manufacture of potable alcohol.
- Fertiliser (except bio-fertilisers)
- Mining and Quarrying
- Iron and Steels Smelting
- Beedies/Cigarettes/Cigars/Gutka and Tobacco based products
- All types of Saw Mills
- All Micro, Small & Medium Service Enterprises (for certain type of incentives)
- Cement
- Aluminium Smelting
- Calcium Carbide
- Slaughter House
- Re-packing of Drugs/Medicine/Chemical, without any processing or value addition
- Azoic/Reactive Dyes
- Fire Crackers
- Industries manufacturing and or utilizing Ozone depleting substances
- Poultry
- Cyanide
- Caustic Soda
- Potassium Chloride
- Nylon Fibre
- Rayon Fibre
- Polyester Fibre
- One time use and throw away plastics
- 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