The following incentives and concessions are
being extended to micro, small and medium enterprises in the State:
25% capital subsidy on the value of eligible
plant and machinery, subject to a maximum of Rs.150.00 lakh
Additional capital subsidy for enterprises set
up by Women / Scheduled Caste / Scheduled
Tribe / Differently Abled and Transgender
entrepreneurs at the rate of 5% on the value of
eligible plant and machinery, subject to a
maximum of Rs.5.00 lakh.
Additional Capital subsidy 10% for micro
enterprises on the investment made in plant
and machinery value, subjected to a maximum
of Rs.5.00 lakh.
All existing Micro and Small Manufacturing
Enterprises setup anywhere in Tamil Nadu
graduating to higher category by undertaking
expansion/diversification are eligible for 5%
additional capital subsidy subject to a
maximum of Rs. 25 lakhs for scaling up.
Additional Capital Subsidy at the rate of 25%
of plant and machinery value installed to
promote such technology subjected to
maximum of Rs.10.00 lakh for new and
existing enterprises promotes cleaner and
environmental friendly technologies.
Eligible Enterprises
All new micro manufacturing enterprises
established anywhere in the state.
All new small and medium enterprises under
following 24 thrust sectors established
anywhere in the state (excluding additional
capital subsidy and employment generation
subsidy):
Electrical and electronic industry
Leather and leather goods
Auto parts and components
Drugs and pharmaceuticals
Solar energy equipment
Gold / Diamond jewellery for exports
Pollution control equipments
Electric Vehicle components, charging infrastructure and components
Cost - effective building material
Readymade garments
Food processing
Plastic (except ‘one-time use and throw away plastics’)
Rubber
Bio Technology
Petro Chemicals and Speciality Chemicals
Medical Devices, Equipment and Components
Sports goods and accessories
Technical Textiles and Medical Textiles
Aero Space, Defence Applications and Components
Electronic System Design and Manufacturing
Alternate products for ‘one time use and throwaway plastics
Electronic Waste Processing
Industry 4.0
Traditional Industries
All new small and medium manufacturing
enterprises established in any of the 254
industrially backward blocks in the state.
All new agro based small and medium
manufacturing enterprises established in any
of the 388 blocks in the state.
Existing manufacturing enterprises of the
above categories which have taken up
substantial expansion / diversification of the
existing activities.
During the financial year 2020-21, a sum of
Rs.26999.37 lakhs has been disbursed to
3491 MSMEs in the State.