Launched by the Department of Micro, Small and Medium Enterprises, Government of Tamil Nadu, the Annal Ambedkar Business Champions Scheme (AABCS) is designed to boost the economic development of SC/ST entrepreneurs. Noting the low uptake of entrepreneurship promotion subsidies among SC/ST communities, the scheme provides a 35% capital subsidy (up to a maximum of ₹1.5 Crore) along with a 6% interest subvention on loans for procuring machinery and equipment. Implementation is overseen by the Industries Commissioner and Director of Industries & Commerce (ICDIC), with support from FaMeTN, the Entrepreneurship Development and Innovation Institute, and StartupTN. A State Level Steering Committee, comprising key officials from Finance, MSME, Adi Dravidar and Tribal Welfare Departments, and industry experts, reviews the scheme quarterly.
Benefits
Under AABCS, beneficiaries receive:
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Capital Subsidy:
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35% of the Eligible Project Cost, not exceeding ₹1.5 Crore.
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This subsidy is provided upfront to meet the margin money requirement for credit linkage.
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Interest Subvention:
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A 6% interest subvention on loans sanctioned by scheduled Commercial Banks, Cooperative Banks, Tamil Nadu Industrial Investment Corporation, or NBFCs.
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The subvention applies to loans with a tenure of up to 10 years, and working capital loans are eligible for interest subvention for up to 2 years.
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Eligibility
To qualify for the scheme, an applicant must meet the following criteria:
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Residency and Community:
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Must be a resident of Tamil Nadu.
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Beneficiaries should belong to SC/ST communities, and the supported enterprise must be 100% owned by SC/ST individuals.
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Business Type:
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The scheme supports both new enterprises and the expansion of existing ones.
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Eligible businesses include those in manufacturing, services, and even trading projects (provided they exceed the threshold under the Unemployed Youth Employment Generation Programme).
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Age and Qualification:
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Beneficiaries must be 55 years or younger.
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There is no minimum educational qualification required.
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Additional Considerations:
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Enterprises can claim additional capital subsidy from other schemes (e.g., the Credit Linked Capital Subsidy Scheme) if applicable.
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Entrepreneurship Development Training is provided to all beneficiaries, including prospective applicants or their wards.
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Application Process
The application process is entirely online and involves the following steps:
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Registration and Login:
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Visit the official website of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu.
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Click on “Apply Online” and select “New Application.”
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Register by providing your Name, Date of Birth, Email ID, Aadhaar Number, and Mobile Number.
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Log in using your credentials after successful registration.
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Form Submission:
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Complete the online application form with all mandatory details.
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Upload the necessary documents (as listed below) and submit the form.
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Dos and Don’ts:
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Ensure accuracy in your submission and follow all instructions provided during the application process to avoid rejection.
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Documents Required
Applicants must prepare and upload the following documents:
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A valid identity proof (e.g., Election ID Card or Aadhaar Card).
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A copy of the PAN Card.
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A recent passport-size photograph.
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Proof of age.
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A valid Caste/Community Certificate.
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Residence proof.
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Bank account details.
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Any additional documents as required by the application guidelines.
Frequently Asked Questions
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Who are the beneficiaries?
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SC/ST individuals owning or operating a business enterprise in Tamil Nadu.
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What is the age limit to apply?
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Beneficiaries must be 55 years or younger.
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Can someone residing outside Tamil Nadu apply?
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The scheme is intended for residents of Tamil Nadu.
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Is there an income ceiling for eligibility?
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No specific income ceiling is mentioned.
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What does the project cost include?
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It covers all capital investments such as land (up to 20% of the project cost), plant, machinery, testing equipment, and computing devices. Vehicles are included only if integral to the business process.
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What is the maximum subsidy available?
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Up to 35% of the Eligible Project Cost, not exceeding ₹1.5 Crore.
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Is there any minimum qualification required?
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No minimum educational qualification is required.
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Does the scheme support only new enterprises?
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The scheme supports both new and existing enterprises.
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Will Entrepreneurship Development Training be provided?
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Yes, all beneficiaries receive training through the Entrepreneurship Development and Innovation Institute, with convergence to other training schemes where applicable.
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At what rate is the interest subvention provided?
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A 6% interest subvention is available on sanctioned loans.
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How long is the interest subvention for working capital loans?
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Up to 2 years.
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Who constitutes the State Level Steering Committee?
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The Committee includes Secretaries of Finance, MSME, Adi Dravidar and Tribal Welfare Departments, the Industries Commissioner and Director of Industries & Commerce, and representatives from welfare and industry sectors.
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Can beneficiaries claim additional subsidies from other schemes?
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Yes, there is no bar on claiming additional capital subsidy from other non-government-controlled schemes.
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How can one apply under the scheme?
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Applications are submitted online through the official MSME Department website.
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