Capital Assistance Boost - (TN)
Tamil Nadu capital assistance for eligible MSMEs investing in plant, machinery, cleaner technology and scale-up.
About this Service
Tamil Nadu extends a portfolio of MSME capital subsidies rather than one scheme formally titled “Capital Assistance Boost.” Current state material includes a base 25% capital subsidy on eligible plant and machinery with additional incentives for micro enterprises, women / SC / ST / differently-abled / transgender entrepreneurs, cleaner technologies and eligible enterprises scaling to a higher category.
Key Benefits
- Capital Subsidy / Special Capital subsidy: 25% capital subsidy on the value of eligible plant and machinery, subject to a maximum of ₹ 150 Lakhs.
- Incentive for Scaling up: All existing Micro and Small Manufacturing Enterprises set up anywhere in Tamil Nadu graduating to higher category by undertaking expansion/diversification are eligible for a 5% additional capital subsidy subject to a maximum of ₹ 25 Lakhs for scaling up.
- Additional Capital Subsidy for Select Category: Additional capital subsidy for enterprises set up by Women / Scheduled Caste / Scheduled Tribe / Differently Abled and Transgender entrepreneurs at the rate of 5% on the value of eligible plant and machinery, subject to a maximum of ₹ 5 Lakhs.
- Additional Capital Subsidy on the value of Plant and Machinery: Additional Capital subsidy of 10% for micro-enterprises on the investment made in plant and machinery value, subjected to a maximum of ₹ 5 Lakhs.
- Additional Capital Subsidy to promote cleaner and environment friendly technologies: Additional Capital Subsidy at the rate of 25% of plant and machinery value installed to promote such technology subjected to a maximum of ₹ 10 Lakhs for new and existing enterprises promotes cleaner and environmentally friendly technologies.
Eligibility Criteria
- All new micro manufacturing enterprises established anywhere in the state.
- All new small and medium enterprises under following 24 thrust sectors established anywhere in the state (excluding additional capital subsidy and employment generation subsidy): (Attached in Separate Documents)
- All new small and medium manufacturing enterprises established in any of the 254 industrially backward blocks in the state.
- All new agro-based small and medium manufacturing enterprises established in any of the 388 blocks in the state.
- Existing manufacturing enterprises of the above categories which have taken up substantial expansion/diversification of the existing activities.
- This scheme is only for manufacturing and machinery purchase. Service activities are not eligible.
- Proprietary, Partnership, Pvt Ltd, Cooperative, Limited, HUF and Other having Udyam Registration can apply
Documents Required
- Udyam Registration
- GST / PAN and constitution documents
- Plant & machinery invoices and payment proof
- Commercial production commencement proof
- CA-certified investment statements
- Land / lease and factory licence documents
- Category certificate for additional subsidy, where applicable
- Pollution / environmental documents for green-technology support
Frequently Asked Questions
What is the timeline for Capital Assistance Boost - (TN)?
The standard timeline depends on government processing, typically ranging from a few days to a few weeks.
What documents are required?
Standard KYC documents (Aadhaar, PAN, Address Proof) and business entity documents are required.
Conclusion
Use “Capital Assistance Boost” only as a website marketing label; the application should reference the exact Tamil Nadu MSME incentive component and current government order.
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Capital Assistance Boost - (TN)
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