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District Industries Centre comes under the Department of Industries and Commerce.

Incentives

The Government of TamilNadu, with a view to stimulate further industrial development, facilitate new manufacturing capacity enable global manufacturing competence and competitiveness of local industry, have announced “MICRO, SMALL AND MEDIUM INDUSTRIES POLICY 2008”

The New M.S.M.E Industries Policy, 2008 envisages to accelerate development and manufacturing competitiveness through infrastructure and human resources development in Micro, Small and Medium Enterprises sector.  It mainly aims to promote 10 lakhs direct and indirect employment opportunities during the XI the plan period.

 

Infrastructure Support

  • Schemes for up gradation of existing industrial estates.
  • Schemes for establishment of new industrial estates.
  • Reservation of up to 20% of land in SIPCOT industrial estates for Small and Medium enterprises. 30% reservation of area for Micro Enterprises in SIDCO industrial estates.
  • 50% of rebate of stamp duty and registration charges for Micro and Small enterprises setup in industrial estates and also industrial backward areas.
  • Infrastructure subsidy of 20% for development of private industrial estates, subject to maximum one corer per estate.

Intensive Support

A) Exclusive subsidy schemes for micro manuifacturing enterprises established any where in the state

  • 15% Capital subsidy on the value of eligible plant and machinery subject to a maximum of Rs.3.75 lakhs.

  • 20% low tension power tariff subsidy for 36 months from the date of commencement of commercial production or from the date of power connection whichever is later.

  • 100% subsidy on the net value of Value Added Tax (VAT) paid by them for the first 6 years up to the value of investment made in eligible plant and machinery at the time of allotment of Entrepreneur Memorandum No.PartII.

  • Stamp duty exemption on mortgaged and pledged documents.

B) Subsidy schemes for micro, small and medium manufacturing enterprises established in industrially backward blocks and agrobased industries

  • 15% Capital Subsidy on the value of eligible plant and machinery, subject to a maximum of Rs.30 lakhs.

  • 5% additional employment intensive subsidy on the value of eligible plant and machinery for giving employment to 25 workers for 3 years within the first 5 years from the date of commencement of production, subject to a maximum of Rs.5 lakhs.

  • 5% additional capital subsidy on the value of eligible plant and machinery for units set up by women, schedules caste/scheduled tribe, physically disabled persons and transgender entrepreneurs, subject to a maximum of Rs.2 lakhs.

  • 20% low tension power tariff subsidy for 36 months from the date of commencement of production or from the date of power connection whichever is later after allotment of Entrepreneur Memorandum No. Part II.

  • 25% additional capital subsidy to promote cleaner environment technologies maximum of Rs.3 lakhs. (Certification by TNPCB)

C) Special capital subsidy for thrust sector industries set up anywhere in the state

15% Special Capital Subsidy on the eligible plant and machinery for the 10 thrust sector industries viz., electrical and electronic industry, leather, auto parts and components, drugs and pharmaceuticals etc. set up anywhere in the State subject to a maximum of Rs.30 lakhs.  However, the subsidies mentioned at (b) above are eligible for the thrust sector set up in industrially backward areas only.

 

Technical Support

  • Establishment of Industrial Cluster and Mini Tool Rooms Under PPP mode.
  • 3% back-ended subsidy for technology up gradation/modernization maximum of Rs.10 lakhs for the period of 5 years.
  • Assistance for creation of centers of excellence and Technology Business Incubators for Introduction of new production techniques and design development to the tune of Rs.50 lakhs per incubator.
  • 50% subsidy on the cost of filing a patent application or 2 lakhs whichever is less and 50% subsidy on the cost of trade mark registration or 25000- whichever is less

Information And Marketing Support:

  • 15% Price preference for purchase of goods of domestic micro and small enterprises, as provided in the Tamil Nadu Transparency in Tenders Act, 1998.
  • Purchase preference for items notified by the State Government.
  • Waiver of EMD for participation in tenders.

 

Policy Support:

  • A Separate policy for rehabilitation of sick micro, small and medium industries with rehabilitation package.
  • Proposed formulation of export policy to encourage the export of the products of micro, small and medium enterprises in the State.

 

Note: -
The Package of incentives and concessions contained in this Micro, Small and Medium Industries Policy, 2008 will be eligible to all new micro, small and medium manufacturing enterprises, which have taken effective steps to set up their units on or after 1.8.2006 and commenced commercial production on or after 22.02.2008, the date of announcement of Micro, Small and Medium Industries Policy, 2008.  These incentives will also be eligible for u nits taking up substantial expansion/diversification of their existing activities on the incremental assets created towards expansion/diversification.