Subsidies
Subsidies
Subsidies ease the financial challenges faced by MSMEs by reducing costs in areas like capital investment, energy usage, payroll, quality certification, and innovation. These incentives encourage entrepreneurship, promote sustainability, and strengthen competitiveness across Tamil Nadu.
Capital Subsidy
This scheme provides 25% assistance on eligible plant and machinery up to ₹150 lakhs, with additional incentives for women, SC/ST, differently abled, and transgender entrepreneurs. Micro units receive 10% extra subsidy, while expanding or migrating units can get up to 5% more. Units promoting cleaner and environment friendly technologies are eligible for 25% support up to ₹10 lakhs. Open to all registered MSMEs under Udyam, including those in backward or agro-based blocks. Applications must be submitted within one year from the start of commercial production or installation of cleaner technology.
PEACE – Energy Audit Subsidy
Aimed at promoting energy efficiency among manufacturing MSMEs located anywhere in the district, this subsidy covers 75% of audit costs up to ₹1 lakh for first time or consecutive audits after 3 years. For implementation of audit recommendations, 50% subsidy on eligible components is provided up to ₹10 lakhs, subject to achieving a minimum of 10% energy savings upon implementation. Claims are to be applied online on a quarterly basis.
LTPT Subsidy
Designed to ease electricity costs for new micro manufacturing enterprises, this scheme offers a 20% reimbursement on power consumption charges for the first three years. Eligible enterprises are those with new connections or additional load availed in LTPT–IIIB. Applications must be filed within 3 months from the Date of Commercial Production or date of instalment, whichever is later. Reimbursement should be claimed online once every 6 months.
Back-End Interest Subvention
This scheme offers a 5% interest subsidy for five years to micro and small enterprises. For loans availed for technology upgradation, support is provided up to ₹25 lakhs. For loans availed under CGTMSE (new or expansion), support is provided up to ₹20 lakhs. Claims are to be applied online on a quarterly basis.
Payroll Subsidy
The Payroll Subsidy reimburses 100% of the employer’s EPF contribution for three years, up to ₹24,000 per employee annually, for enterprises maintaining regular employment of a minimum of 20 persons. It applies to new micro manufacturing enterprises located anywhere in Tamil Nadu and small or medium enterprises in agro-based regions, backward blocks, SIDCO, SIPCOT, and government industrial estates. Claims should be made within three months after the end of each financial year.
Q-Cert Subsidy
This incentive reimburses certification costs fully up to ₹2 lakhs for national certifications and up to ₹10 lakhs for international certifications such as ISO 9001, ISO 14001, GMP, GRS, and CE Marking. It applies to both manufacturing and service MSMEs that obtain certification from authorised bodies. Applications must be submitted within one year from the date of certification.
Stamp Duty Subsidy
Manufacturing MSMEs setting up in backward blocks can receive a 50% reimbursement of stamp duty and registration charges on industrial land purchases. The land must be registered in the enterprise’s name and used for factory establishment. Applications are to be submitted within six months from the commencement of commercial production.
IPR Subsidy
Encouraging innovation, this scheme grants ₹1 lakh for each patent awarded and reimburses 75% of patent filing expenses up to ₹3 lakhs. Eligible applicants include MSMEs, institutions, and individuals with granted patents and verifiable expense records. Applications must be submitted within 6 months from the date of patent grant.
GI Tag and Trademark Subsidy
This subsidy reimburses 50% of expenses up to ₹25,000 for obtaining a trademark or GI-tag registration, supporting brand protection and identity. It is open to MSMEs and clusters registering unique products with authorized agencies. Applications should be made within six months of receiving the registration certificate.
