I. Support to Micro Manufacturing Enterprises All Micro Manufacturing Enterprises established any where in the State will be eligible for the following incentives.

1. Capital Subsidy

A capital subsidy will be extended at the rate of 25% on eligible plant and machinery as indicated in the Micro, Small and Medium Enterprises Development (MSMED) Act 2006 and Rules.

2. Low Tension Power Tariff (LTPT) subsidy:

Low Tension Power Tariff (LTPT) subsidy will be available at a flat rate of 20% for the first 36 months from the date of commencement of production or from the date of power connection, whichever is later, after allotment of an Entrepreneur Memorandum (Part 2) number from the District Industries Centres.

3. Subsidy on the assessed Value Added Tax (VAT):

All Micro Manufacturing Enterprises will be entitled to a subsidy equal to the assessed Value Added Tax (VAT) paid by them for the first six years after commencement of production. The total subsidy entitlement over the period would be up to the value of investments made in plant and machinery at the time of allotment of an Entrepreneur Memorandum (EM)
number (Part 2) by the District Industries Centres.

4. Stamp duty exemption

Micro Manufacturing Enterprises will be exempted from payment of stamp duty on mortgaged and pledged documents.

II. Support to Micro, Small and Medium Manufacturing Enterprises in Backward areas.

The following blocks notified as backward area in Namakkal District and are eligible for the following Subsidy Schemes.

a. Capital subsidy

A capital subsidy will be extended at the rate of 25% on eligible plant and machinery as indicated in the Micro, Small and Medium Enterprise Development (MSMED) Act 2006 and rules, subject to a maximum of Rs.30 lakhs.

b. Employment intensive subsidy

An employment intensive subsidy of an additional 5%, subject to a maximum of Rs.5 lakhs, will be granted if at least 25 workers have been employed for a minimum period of 3 years within the first five years from the date of commencement of production. The evidence for the employment of workers would be the related statutory returns such as the returns filed under the Employees Provident Fund Act, etc.,

c. Additional capital subsidy for select category of Entrepreneurs

An additional capital subsidy of 5%, subject to a maximum of Rs.2 lakhs will be given to enterprises set up by Women, SC / ST, Physically Disabled and Transgender entrepreneurs.

d. Additional capital subsidy for promotion of cleaner and environment friendly technologies
An additional capital subsidy of 25% will be given on the value of plant and machinery installed to promote cleaner and environment friendly technologies, subject to a maximum of Rs.3 lakhs and certification by Tamil Nadu Pollution Control Board that the equipments installed serve such a purpose.

e. Low Tension Power Tariff (LTPT) subsidy

Low Tension Power Tariff (LTPT) subsidy will be available at a flat rate of 20% for the first 36 months from the date of commencement of production or from the date of power connection, whichever is later, after allotment of an Entrepreneur Memorandum (Part 2) number from the District Industries Centres.

III. Technical Support

•  Establishment of Industrial Cluster and Mini Tool Rooms under public private partnership mode.
  
•  3% back-ended interest subsidy for technology upgradation / modernization subject to a ceiling of Rs.10 lakhs per
  enterprise over a period of 5 years.
  
•  Creation of 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.
  
•  50% subsidy on the cost of filing a patent application or Rs.2,00,000/- per application whichever is less and 50%
  subsidy on the cost of trade mark registration or Rs.25,000/- whichever is less.
  
•  Reimbursement of 50% of the tuition fees for conducting short term training courses for entrepreneurship and skill
  development programmes by Industries Associations.
  

IV. 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 Earnest Money Deposit for participation in tenders.
  
•  50% grant on hall rent, subject to a ceiling of Rs.5 lakhs per event in Chennai / Rs.1 lakh per event in the Districts and
   Rs.5 lakhs in other States per exhibition.
  
•  Support for marketing under a common banner or Brand Name.
  

V. Special Capital Subsidy for Thrust Sector Enterprises

A Special capital subsidy will be extended to Micro, Small and Medium manufacturing Enterprises under the following thrust sectors, located anywhere in the State, at the rate of 25% on eligible plant and machinery as indicated in the MSMED Act 2006 and Rules, subject to a maximum of Rs.30 lakhs.

  1. Electrical and Electronic Industry.
  2. Leather and Leather goods.
  3. Auto parts and components.
  4. Drugs and Pharmaceuticals.
  5. Solar Energy Equipment.
  6. Gold and Diamond Jewellery for exports.
  7. Pollution Control equipments.
  8. Sports Goods and Accessories.
  9. Cost effective building material.
  10. Readymade Garments.
  11. Any other industry to be notified by the Government in   this regard from time to time.

This subsidy will also be eligible to enterprises taking up substantial expansion/diversification of their existing activities on the incremental assets created towards expansion/diversification.

Enterprises eligible for Special Capital subsidy for thrust sectors will not be eligible for other subsidies noted above in the eligible subsidies. However this restriction will not be applicable to thrust sector enterprises set up in backward areas and in Industrial Estates located away from a radius of 50 KM from Chennai City Centre.

SCHEMES FOR TECHNOLOGY DEVELOPMENT

•  3% Back Ended Interest Subsidy for Technology Upgradation/Modernization.
  
•  50% subsidy on the cost of filing a patent application and for trade mark registration.
  
•  Establishment of industrial clusters and mini tool rooms under public private partnership mode.
  
•  of technology development fund for evolving cleaner/energy efficient/ IT energy technologies.
  
•  for creation of centers of Excellence and technology business incubators for introduction new production techniques  and design development.

SCHEMES FOR INFRASTRUCTURE DEVELOPMENT

•  Establishment of multi/stories flatted industrial estates for micro industries has been included in the policy for the first  time in the state.
  
•  Liberal floor space index (FSI) would be considered for plotted development upto 1.5 to 1.7 industrial sheds and upto  2.5 for multi-stored industrial units.
  
•  Reservation of upto20% of land in all SIPCOT estates for micro, small and medium industries and 30% of area will be  reserved for micro industries in SIDCO estates.
  
•  An infrastructure subsidy of 20% will be given for the development of private sector industrial estate the first time in  the state.
  
•  50% Rebate on Stamp-duty and Registration charges will be given to micro and small enterprises setting in industrial  estates and also in industrially.

SCHEMES FOR SKILL DEVELOPMENT

Reimbursement of 50% of the tuition fees A for conduction short term training courses to the Entrepreneurship and skill development Programmes by industrial associations.