Micro, Small and Medium Enterprises Department
குறு, சிறு மற்றும் நடுத்தரத் தொழில் நிறுவனங்கள் துறை

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GUIDELINES FOR AVAILING CAPITAL SUBSIDY

Following category of manufacturing Enterprises/activities are eligible for capital subsidy

New Enterprises:

  • a. All new Micro manufacturing enterprises established anywhere in the State.
  • b. All new Small and Medium manufacturing enterprises established in all the 251 industrially backward blocks.
  • c. All new Agro based industries in 385 blocks in the state.
  • d. All new Small and Medium enterprises under following 13 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 and Diamond Jewellery for exports
    • Pollution Control equipments
    • Sports Goods and Accessories
    • Cost effective building material
    • Readymade Garments
    • Food Processing
    • Plastic
    • Rubber Products

Expansion / diversification Enterprises:

Existing Manufacturing Enterprises of the above categories which have taken up substantial expansion / diversification of the existing activities, subject to the condition that expansion ( or) diversification the involves enhancement of plant and machinery value by atleast 25 % of the value of existing plant and machinery and also involving enhancement of turnover by 25 % for the same product (or) new products lines.

Time limit for filing of applications

All the above industries have to file their capital subsidy application within one year from the date of commencement of commercial production through online or with the GM, DIC/ RJD, Chennai for becoming eligible for availing the capital subsidy.

List of activities eligible for subsidy under the thrust sectors enterprises

Electrical and Electronic Industry

List of Electrical and Electronic items mentioned in the eligible list given in G.O. Ms. No. 14, MSME (B) Dept., dated 07.05.2008. Electrical and Electronic items with ISI certification or items manufactured by enterprises who have obtained ISO 9001 Certification alone will be considered eligible for subsidy.

Leather and Leather goods

Includes tanneries and leather processing enterprises, subject to the condition that the Enterprise has obtained necessary clearances from Tamil Nadu Pollution Control Board.

Auto parts and components

List of Auto parts and components mentioned in the eligible list given in G.O. Ms. No. 14, MSME (B) Dept. dated 07.05.2008. Auto parts and components manufactured by enterprises who have obtained ISO 9001 Certification alone will be considered eligible for subsidy.

Drugs and Pharmaceuticals.

All drugs and formulations including Allopathic, Siddha, Ayurvedha, Unani, Homeopathy etc., as approved by the Indian Pharmacopoeia , subject to the condition that the Enterprise has obtained required drug licenses under Drug Control Order from authorities concerned.

Solar Energy Equipment

Enterprises manufacturing the following Solar Energy Equipments are considered eligible for subsidy.

  • Flat -plate solar collectors
  • Concentrating and pipe type solar collectors
  • Solar water heaters and systems
  • Solar crop dryers and systems
  • Solar stills and desalination systems
  • Solar pumps based on solar thermal and solar photo-voltaic conversion
  • Solar power generating systems
  • Solar photo-voltaic modules and panels for water pumping and other applications
  • Solar cookers
  • Solar refrigerators, solar cold storage air conditioning systems

Pollution Control equipments

The enterprises manufacturing Pollution control equipments should submit a Certificate obtained from the TNPCB authorities duly indicating that the pollution Control equipments manufactured by them meets the standards prescribed by the Pollution Control Board.

Following list of Manufacturing Enterprises/activities are not eligible for capital subsidy
  • Sugar
  • Distilleries, Brewery and Malt Extraction
  • Units utilizing Molasses/rectified spirit/de-natured spirit as raw material for manufacture of potable alcohol
  • Fertiliser
  • Mining and Quarrying
  • Iron and Steels Smelting
  • Beedies / Cigarettes / Cigars / Gutka and Tobacco based products
  • All types of Saw Mills
  • Micro, Small & Medium Service Enterprises
  • 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
  • Agro based industries set up in corporations and municipalities in the state
  • All capital subsidy applications filed after one year from the date of commencement of commercial production.