Capital Subsidy
Category: Business & Entrepreneurship
Level: State | State: Tamil Nadu

Details:
The scheme &quot;Capital Subsidy&quot; by the Micro Small and Medium Enterprises Department, Government of Tamil Nadu, is introduced to assist MSME enterprises in reducing their burden of capital procurement. The subsidy is provided for 25% of eligible plant and machinery costs for Micro Manufacturing Enterprises and Small and Medium Enterprises, with an additional capital subsidy for enterprises set up by Women / Scheduled Caste / Scheduled Tribe / Differently Abled and Transgender entrepreneurs.

Benefits:
25% capital subsidy on the value of eligible plant and machinery, subject to a maximum of ₹ 150,00,000.
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 ₹ 5,00,000.
Additional Capital subsidy of 10% for micro-enterprises on the investment made in plant and machinery value, subjected to a maximum of ₹ 5,00,000.
All existing Micro and Small Manufacturing Enterprises set up anywhere in Tamil Nadu graduating to higher category by undertaking expansion/diversification are eligible for a 5% additional capital subsidy subject to a maximum of ₹ 25,00,000 for scaling up.
Additional Capital Subsidy at the rate of 25% of plant and machinery value installed to promote such technology subjected to a maximum of ₹ 10,00,000 for new and existing enterprises promotes cleaner and environmentally friendly technologies.

Eligibility Criteria:
1.   All new micro manufacturing enterprises established anywhere in the state.
2.   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._
3. All new small and medium manufacturing enterprises established in any of the 254 industrially backward blocks in the state.
4. All new agro-based small and medium manufacturing enterprises established in any of the 388 blocks in the state.
5. Existing manufacturing enterprises of the above categories which have taken up substantial expansion/diversification of the existing activities. Check your Eligibility for the Scheme [here](https://www.msmeonline.tn.gov.in/incentives/know_your_eligibility.php)