PEACE Scheme for MSMEs in Tamil Nadu – 50% Subsidy on Energy

The Promotion of Energy Audit and Conservation of Energy (PEACE) Scheme is an initiative by the Micro, Small, and Medium Enterprises (MSME) Department, Government of Tamil Nadu, designed to encourage energy conservation and efficiency among manufacturing enterprises.

This scheme consists of four major components:

1. Awareness Programme
2. Training Programme
3. Detailed Energy Audit
4. Incentive for Implementing Energy Audit Recommendations

The Incentive for Implementing Energy Audit Recommendations component provides financial assistance to MSMEs that implement energy-saving recommendations from an official Energy Audit Report, helping businesses optimize energy consumption, reduce costs, and enhance sustainability.

Scheme Benefits

• MSMEs can receive 50% subsidy on eligible investments, up to a maximum of ₹10,00,000.
• Only investments made after the energy audit are eligible for the subsidy.
• The subsidy applies separately for the original and subsequent energy audits.

Subsidy Disbursal Process

• The subsidy is released only after implementing the energy audit recommendations, certified by a registered energy auditor.
• If the enterprise has taken a loan for implementing the recommendations, the subsidy amount will be directly adjusted to the loan account (if the loan is active).

Eligibility Criteria

To qualify for this scheme, the MSME must meet the following conditions:

• The enterprise must be a manufacturing MSME located in Tamil Nadu.
• The enterprise must have conducted an energy audit and achieved at least 10% energy savings (measured in energy units per unit of product manufactured).
• If the enterprise has multiple manufacturing units, it may apply separately for each unit.
• There must be a minimum gap of three years between the previous and the current energy audit.
• The percentage of energy savings will be calculated based on:
  • Twelve-month average energy consumption before implementing audit recommendations.
  • Three-month average energy consumption after implementation.

Eligible Components for Subsidy

The following expenses incurred for energy conservation are eligible for subsidy:

• Cost of acquiring technology aimed at energy savings.
• Cost of replacing equipment for energy conservation.
• Cost of new machinery, accessories, or retrofit equipment for energy efficiency.
• Cost of modifying or upgrading existing machinery for improved energy conservation.

Exclusions

The following entities are not eligible for the subsidy:

• Micro, Small, and Medium service enterprises (only manufacturing enterprises qualify).
• MSMEs that have already received similar subsidies from any other State or Central Government agency for the same purpose.

Application Process

Applicants can apply online through the MSME Tamil Nadu portal.

Step-by-Step Online Application Guide

Step 1: Registration

1. Visit the Official MSME Tamil Nadu Portal.
2. Click on “Login / Registration” on the homepage.
3. Fill in the mandatory details:
   • Name, Date of Birth, Aadhaar Number, Email ID, and Mobile Number.
4. Create a secure password (minimum 8 characters, 1 uppercase, 1 lowercase, and 1 numeric digit).
5. Enter the captcha code and click “Register”.

Step 2: Login

1. Visit the Login Page and enter your registered Email ID and Mobile Number.
2. Click “Sign In” to access your profile.

Step 3: Fill Application Form

1. Click on “Schemes” and select “Incentive for Implementing Energy Audit Recommendations” from the dropdown.
2. Click “Apply Online” → “New Application”.
3. Fill in all mandatory fields, review the information, agree to the terms and conditions, and click “Proceed”.
4. Note the reference number displayed on the screen for future tracking.

Step 4: Upload Required Documents

1. Click on “Upload Documents” under the Schemes menu.
2. Enter your Application ID and click “Submit”.
3. Upload all the required documents in the specified format.
4. Click “View” to verify that the uploaded documents are correct.

Step 5: Submit Application

1. Check all mandatory fields at the bottom of the form.
2. Click “Submit Application” to complete the process.
3. You will receive a confirmation message via SMS regarding your application submission to GM/DIC/RJD.

(Optional) Step 6: Track Your Application Status

Applicants can track their application on the portal and receive updates via email or SMS.

Track Application Status Here

Time Limit for Application Submission

• MSMEs must apply within six months of implementing the energy audit recommendations.

Documents Required

Applicants must upload the following documents in PDF format (size below 200 KB):

• Udyog Aadhaar Memorandum / Udyam Registration Certificate.
• Company Registration Certificate (LLP, Societies Act, or Company Incorporation Certificate).
• Proof of Connected Load (EB Meter Card/Online Statement).
• Proof of Alternative Energy Source (if applicable).
• Energy Auditor Engagement Letter / Acceptance Letter.
• Proof of Energy Auditor’s Accreditation by the Bureau of Energy Efficiency (BEE).
• Self-certified Statement on Expenditure Incurred for Energy Audit (with bills and receipts).
• Detailed Energy Audit Report.

Frequently Asked Questions (FAQs)

Why is there a requirement for a three-year gap between energy audits?
This ensures that enterprises implement long-term energy-saving measures before applying for another audit-based subsidy.

How can I track my application status?
Applicants can track their status through the MSME Tamil Nadu portal using their Application ID.

How is the percentage of savings in specific energy consumption calculated?
Savings are measured by comparing twelve-month average energy consumption before implementation and three-month average energy consumption after implementation.

What documents are required for application, and what are the specifications?
Applicants must submit Udyam Registration Certificate, Company Registration Proof, Energy Audit Report, and Invoices, in PDF format (below 200 KB).

What costs are covered under the eligible components for subsidy?
The subsidy covers technology acquisition, equipment replacement, machinery modifications, and retrofits for energy efficiency.

Which enterprises are excluded from the scheme?

• Service sector MSMEs.
• Manufacturing MSMEs that have already received a similar subsidy from any other State or Central Government agency.

What is the maximum subsidy amount under this scheme?
MSMEs can receive 50% of eligible costs, up to ₹10,00,000.

Sources & References

• Guidelines
• Official Contact Details
• Grievance Redressal
• Application & Document Requirements