- All micro manufacturing enterprises are entitled to a capital subsidy at the rate of 15% on the value of plant and machinery subject to maximum of Rs.3.75 Lakhs
- Low Tension Power Tariff Subsidy is provided at a flat rate of 20% for the first 3 years from the date of commencement of production or from the date of power connection, whichever is later.
- All micro manufacturing enterprises are entitled to a 100% subsidy on the net Value Added Tax paid by them for the first 6 years from the date of commencement of production, up to the value of the investments made in the Plant and Machinery. The above reimbursement of Value Added Tax would be on quarterly basis 18 i.e. the tax paid during one quarter will be reimbursed to the enterprise as subsidy towards the payment of tax during the next quarter.
- Micro manufacturing enterprises are exempted from payment of stamp duty on mortgaged and pledged documents.
Special Capital Subsidy for Thrust Sector Enterprises set up in the State
The Government of Tamil Nadu provides a Special Capital Subsidy of 15% on the eligible Plant and machinery (subject to a maximum of Rs.30.00 Lakhs) to the 13 thrust sector enterprises setup anywhere in the state viz., 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 materials, Readymade Garments, Food Processing, Plastic and Rubber Industries.
Generator Subsidy
The Government extends Generator subsidy at 25% of the cost of the Generator set, subject to a maximum of Rs.5 Lakhs to micro, small and medium manufacturing enterprises towards the purchase of new Generator sets upto 320 KVA capacity. The Government have sanctioned Rs.23.48 Crores for the year 2012-13, to meet the growing demand from the micro, small and medium enterprises
Value Added Tax Reimbursement Subsidy
All micro manufacturing enterprises are entitled to a 100% subsidy on the net Value Added Tax paid by them for the first 6 years from the date of commencement of production, upto the value of the investments made in eligible Plant and Machinery. The Government have sanctioned Rs.3.50 Crores for the year 2012-13 towards the implementation of the scheme.
Low Tension Power Tariff subsidy
All Micro, Small and Medium Enterprises units are eligible for sanction of 20% of total
electricity charges for the first 3 years from the date of commencement of production or from the date of power connection, whichever is later.
The following categories of enterprises are eligible for Low Tension Power Tariff subsidy:
- All new Micro Manufacturing Enterprises set up anywhere in the State
- All New Micro, Small, Medium, Agro based and Food Processing Enterprises set up in all 385 blocks in the State.
- All New Small and Medium Manufacturing Enterprises set up in backward areas and industrial estates, excluding the industrial estates located within the radius of 50 Kms from Chennai city centre.
- Existing Manufacturing Enterprises of the above three categories have taken up substantial expansion / diversification of their existing activities
Schemes for Technology Development
Government provides assistance to MSME's for technology development through following schemes:
- 50% subsidy on the cost of filing a patent application subject to a maximum of Rs.2 Lakhs per application.
- 50% of the cost of the application for trade mark registration or Rs.25,000/- whichever is less.
- Establishment of industrial clusters and mini tool rooms under the Public Private Partnership mode by providing 25% of the total project cost subject to a maximum of Rs.1 Crore as assistance.
- Creation of a Technology Development Fund for evolving cleaner / energy efficient / IT enabled technologies.
- Assistance for creation of Centres of Excellence and Technology Business Incubators for introduction of new production techniques and design development to the tune of Rs.50 Lakhs per incubator / centre of excellence
For detailed report on various incentives and schemes offered by Government ref the