Capital Subsidy

StateCash

At a Glance

Scheme Category

Business & Entrepreneurship,Setting up / start-up / entrepreneurship,Credit Linked Subsidy

Target Beneficiaries

Business Entity

Brief Description

"Capital Subsidy" by the MSME Dept, Govt of Tamil Nadu, assists MSMEs in reducing their burden of capital procurement. The subsidy is provided for 25% of eligible plant and machinery costs for MSMEs, with an additional capital subsidy for MSMEs set up by Women/SC/ST/Transgender/PwD entrepreneurs.

Benefit Type

Cash

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 <nis:link nis:type=webUrl nis:id=slugId nis:text="here" nis:value=https://www.msmeonline.tn.gov.in/incentives/know_your_eligibility.php nis:enabled=true/>

Application Mode

Online

Application Process

Access the User Manual for Online Application <nis:link nis:type=webUrl nis:id=slugId nis:text="here" nis:value=https://www.msmeonline.tn.gov.in/incentives/pdf/filling%20procedure_cs.pdf nis:enabled=true/> > Step 1: Registration - Visit the <nis:link nis:type=webUrl nis:id=slugId nis:text="Official Website/Portal" nis:value=https://www.msmeonline.tn.gov.in nis:enabled=true/> of the Micro, Small, and Medium Enterprises Department of the Government of Tamil Nadu. In the top ribbon, click "<nis:link nis:type=webUrl nis:id=slugId nis:text="Login / Registration" nis:value=https://www.msmeonline.tn.gov.in/registration.php nis:enabled=true/>".- In the registration form, fill in the mandatory details accurately, Name, Date of Birth, Aadhaar Number, Email ID, and Mobile Number. Create a new password. The password must contain a minimum of 8 characters, 1 Upper Case Letter, 1 Lower Case Letter, and 1 Numeric Field. - Fill in the captcha code, and click "Register". > Step 2: Login Visit the <nis:link nis:type=webUrl nis:id=slugId nis:text="Login Page" nis:value=https://www.msmeonline.tn.gov.in/registration.php nis:enabled=true/> and click "Login", and then fill in the credentials received on your registered Email ID and the registered Mobile Number. > Step 3: Form Filling - After successfully logging in, hover over "Schemes" in the top ribbon, and then click on the concerned scheme from the dropdown. - On the next page, hover over "Apply Online" in the top ribbon, and then click on "New Application" from the dropdown. - Fill in all the mandatory fields of the Application Form. Carefully review all the information provided, acknowledge and agree to the terms and conditions, declaration, and privacy policy, and then click "Proceed". - Note down the reference number appearing on the screen and then click "Close". > Step 4: Upload Documents - Now, hover over "Schemes" in the top ribbon, and then click "Upload Documents" from the dropdown. - On the next page, provide the Application ID and click "Submit". - On the next page, upload all the mandatory documents in the specified format and size. - After uploading the documents, click "View" to verify the documents uploaded for correctness. > Step 5: Submission - Fill in all the checkboxes appearing at the bottom of the screen and then click "Submit Application". - The message regarding the submission of the online application to GM/DIC / RJD will be received on your mobile phone. (Optional) Step 6: Track Application Status You can check the status of your application <nis:link nis:type=webUrl nis:id=slugId nis:text="here" nis:value=https://www.msmeonline.tn.gov.in/incentives/app_track.php?id=Track%20Your%20Status nis:enabled=true/>. The portal may provide updates via email or SMS regarding your application status. NOTE 1: The application and the documents submitted through the online portal are sufficient and there is no need to submit the hard copy of the application and documents to GM/DIC/RJD either in person or by Post. NOTE 2: The application should be submitted within 1 year from the date of commencement of commercial production. Access the Preview of the Application Form <nis:link nis:type=webUrl nis:id=slugId nis:text="here" nis:value=https://www.msmeonline.tn.gov.in/incentives/pdf/Blank%20application_cs.pdf nis:enabled=true/> Access the Sample of a Filled Application Form <nis:link nis:type=webUrl nis:id=slugId nis:text="here" nis:value=https://www.msmeonline.tn.gov.in/incentives/pdf/filled_application_cs.pdf nis:enabled=true/>

Required Documents

Copy of Udyog Aadhaar Memorandum (UAM).
Copy of Sanction Order from Tamil Nadu Electricity Board (T.N.E.B) for Power Supply with Copy of Meter Card.
Copy of Invoices, Cash Bills, and Stamped Receipt Duly Attested.
Certificate of Chartered Accountant (CCA) for Fixed Assets created as of the date of commencement of commercial production in the prescribed form (Annexure-A).
Certificate of Commencement of Commercial Production duly signed by Chartered Accountant.
Chartered Engineer's Certificate (CEC) for the value of the plant and machinery, specifically for self-fabricated plant and machinery items.
Copy of the first sale invoice raised after the commencement of Commercial Production, applicable for enterprises engaged in manufacturing on a job work basis.
Copy of Lease Agreement Deed executed on a stamp paper of ₹10/-, valid for a minimum period of 11 years from the date of commencement of commercial production.
NOTE: The file type should be PDF (.pdf). The file size should be less than 200 kb.

FAQs

Can enterprises engaged in job work-based manufacturing apply for the scheme?

Yes, enterprises involved in manufacturing on a job-work basis can apply, and the first sale invoice after production commencement is a required document.

Is there a subsidy for agro-based small and medium manufacturing enterprises?

Yes, new agro-based enterprises established in designated blocks can avail of the capital subsidy scheme.

What is the maximum capital subsidy for micro-enterprises on plant and machinery investments?

Micro-enterprises can benefit from an additional 10% capital subsidy, capped at ₹5,00,000, on their plant and machinery investments.

Are there specific sectors under which small and medium enterprises are eligible?

Yes, 24 thrust sectors, including electronics, pharmaceuticals, and aerospace, qualify for the scheme, excluding certain subcategories.

Can existing enterprises graduating to a higher category get additional subsidies?

Yes, existing Micro and Small Manufacturing Enterprises scaling up are eligible for a 5% additional capital subsidy, up to ₹25,00,000.

Is there a capital subsidy for enterprises adopting cleaner technologies?

Yes, a 25% additional capital subsidy, up to ₹10,00,000, is available for promoting cleaner and environmentally friendly technologies.

What documents are required for application?

Documents include Udyog Aadhaar Memorandum, TN Electricity Board sanction order, invoices, CA certificates, and others. All files should be in PDF format and under 200 kb.

Are there benefits for enterprises in industrially backward blocks?

Yes, new small and medium manufacturing enterprises in industrially backward blocks are eligible for a 5% additional capital subsidy, capped at ₹25,00,000.

What is the maximum capital subsidy available for enterprises set up by women entrepreneurs?

Women entrepreneurs can avail an additional 5% capital subsidy, up to ₹5,00,000, on eligible plant and machinery costs.

Who is eligible to apply for the Capital Subsidy scheme?

New micro manufacturing enterprises, small and medium enterprises in designated sectors, and existing enterprises undergoing substantial expansion/diversification are eligible.