Sarkari Yojana
Capital Subsidy
About Capital Subsidy
To ease the cost of acquiring capital assets for MSME enterprises, the Micro Small and Medium Enterprises Department, Government of Tamil Nadu has introduced the “Capital Subsidy” scheme. It covers 25% of the cost of eligible plant and machinery for Micro Manufacturing Enterprises and Small and Medium Enterprises, and adds an extra capital subsidy where the enterprise is promoted by Women / Scheduled Caste / Scheduled Tribe / Differently Abled and Transgender entrepreneurs.
Scheme Overview
State Government
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Capital Subsidy, applicants must satisfy the following conditions:
Any new micro manufacturing enterprise set up anywhere…
Any new micro manufacturing enterprise set up anywhere in the state.
Any new small and medium enterprise in the…
Any new small and medium enterprise in the following 24 thrust sectors set up anywhere in the state (not covering 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.
Any new small and medium manufacturing enterprise located…
Any new small and medium manufacturing enterprise located in one of the state's 254 industrially backward blocks.
Any new agro-based small and medium manufacturing enterprise…
Any new agro-based small and medium manufacturing enterprise located in one of the state's 388 blocks.
Existing manufacturing enterprises in the categories above that…
Existing manufacturing enterprises in the categories above that have carried out substantial expansion/diversification of their current activities. Find out whether you qualify for the Scheme here
Benefits Provided
Capital Subsidy provides the following benefits to eligible applicants:
A capital subsidy of 25% on the value…
A capital subsidy of 25% on the value of eligible plant and machinery, capped at ₹ 150,00,000.
Enterprises promoted by Women / Scheduled Caste /…
Enterprises promoted by Women / Scheduled Caste / Scheduled Tribe / Differently Abled and Transgender entrepreneurs get an extra capital subsidy of 5% on eligible plant and machinery value, capped at ₹ 5,00,000.
Micro-enterprises receive a further 10% capital subsidy on…
Micro-enterprises receive a further 10% capital subsidy on their plant and machinery investment, capped at ₹ 5,00,000.
Existing Micro and Small Manufacturing Enterprises anywhere in…
Existing Micro and Small Manufacturing Enterprises anywhere in Tamil Nadu that move up to a higher category through expansion/diversification qualify for an extra 5% capital subsidy for scaling up, capped at ₹ 25,00,000.
To encourage cleaner and environmentally friendly technologies, new…
To encourage cleaner and environmentally friendly technologies, new and existing enterprises get an additional capital subsidy of 25% on the value of plant and machinery installed for such technology, capped at ₹ 10,00,000.
Documents Required
Applicants should keep the following documents ready before starting the application:
A photocopy of the Udyog Aadhaar Memorandum (UAM)
A photocopy of the Udyog Aadhaar Memorandum (UAM).
A photocopy of the Tamil Nadu Electricity Board…
A photocopy of the Tamil Nadu Electricity Board (T.N.E.B) power supply sanction order together with a photocopy of the Meter Card.
Photocopies of invoices, cash bills and stamped receipts,…
Photocopies of invoices, cash bills and stamped receipts, properly attested.
A Chartered Accountant's Certificate (CCA) in the prescribed…
A Chartered Accountant's Certificate (CCA) in the prescribed form (Annexure-A) covering fixed assets created up to the commercial production start date.
A Commencement of Commercial Production certificate signed by…
A Commencement of Commercial Production certificate signed by a Chartered Accountant.
A Chartered Engineer's Certificate (CEC) valuing the plant…
A Chartered Engineer's Certificate (CEC) valuing the plant and machinery, in particular any self-fabricated plant and machinery items.
For enterprises manufacturing on a job work basis,…
For enterprises manufacturing on a job work basis, a copy of the first sale invoice issued after Commercial Production began.
A copy of the Lease Agreement Deed on…
A copy of the Lease Agreement Deed on ₹10/- stamp paper, valid for at least 11 years from the commercial production start date. NOTE: Files must be in PDF (.pdf) format and smaller than 200 kb.
How to Apply
Online Application
Applicants can apply for Capital Subsidy through the online application process outlined below.
*The User Manual for the Online Application can be found here
Registration - Go to the Official Website/Portal of…
Registration
Go to the
Official Website/Portal
of the Micro, Small, and Medium Enterprises Department of the Government of Tamil Nadu and select "
Login / Registration
" from the top ribbon.
Enter the required details in the registration form correctly: Name, Date of Birth, Aadhaar Number, Email ID, and Mobile Number. Set a new password containing at least 8 characters, 1 Upper Case Letter, 1 Lower Case Letter, and 1 Numeric Field.
Type the captcha code and press "Register".
Login Open the Login Page, select "Login", and…
Login Open the Login Page, select "Login", and enter the credentials sent to your registered Email ID and registered Mobile Number.
Form Filling - Once logged in, move the…
Form Filling
Once logged in, move the cursor over "Schemes" in the top ribbon and pick the relevant scheme from the dropdown.
On the following page, move the cursor over "Apply Online" in the top ribbon and choose "New Application" from the dropdown.
Complete every mandatory field in the Application Form, go through all the details carefully, accept the terms and conditions, declaration, and privacy policy, and press "Proceed".
Record the reference number shown on screen, then press "Close".
Upload Documents - Next, move the cursor over…
Upload Documents
Next, move the cursor over "Schemes" in the top ribbon and select "Upload Documents" from the dropdown.
Enter the Application ID on the next page and press "Submit".
Upload every mandatory document in the required format and size on the following page.
Once uploaded, press "View" to confirm the documents are correct.
Submission - Tick all the checkboxes at the…
Submission
Tick all the checkboxes at the bottom of the page and press "Submit Application".
A message confirming that the online application has been sent to GM/DIC / RJD will arrive on your mobile phone.
(Optional)
Track Application Status Your application status can be…
Track Application Status Your application status can be checked here, and the portal may also send email or SMS updates on its progress. NOTE 1: The online application and documents are all that is needed; a hard copy does not have to be sent to GM/DIC/RJD, whether in person or by Post. NOTE 2: Applications must be made within 1 year of the date commercial production begins. *A Preview of the Application Form is available here *A Sample of a completed Application Form is available here
Exclusions / Who Is Not Eligible
Following list of Manufacturing Enterprises/activities are not eligible -
1. Sugar.
2. Distilleries, brewery and malt extraction.
3. Units utilizing Molasses/ rectified spirit/ de-natured spirit as raw material for manufacture of potable alcohol.
4. Fertiliser (except bio-fertilisers).
5. Mining and quarrying.
6. Iron and steel smelting.
7. Beedis/ cigarettes/ cigars/ gutka and tobacco-based products.
8. All types of Saw Mills.
9. Cement.
10. Aluminium smelting.
11. Calcium carbide.
12. Slaughter house.
13. Re-packing of drugs/ medicine/ chemical, without any processing or value addition.
14. Azoic/ reactive dyes.
15. Fire cracker.
16. Industries manufacturing and or utilizing Ozone depleting substances.
17. Poultry.
18. Cyanide.
19. Caustic soda.
20. Potassium chloride.
21. Nylon fibre.
22. Rayon fibre.
23. Polyester fibre.
24. One time use and throw away plastics.
25. All service MSMEs.
26. Any other enterprise/ activity as may be notified by Government.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.