Tamil Nadu MSME Capital Subsidy – Get 25% on Plant & Machinery Investment

The “Capital Subsidy” scheme is offered by the Micro, Small, and Medium Enterprises (MSME) Department, Government of Tamil Nadu to help enterprises reduce their capital burden, especially on investments in plant and machinery. This scheme aims to encourage inclusive entrepreneurship and promote environmentally friendly technologies across various sectors.

Benefits

• 25% capital subsidy on eligible plant and machinery, up to ₹150,00,000

• Additional 5% subsidy (max ₹5,00,000) for units established by:

  • Women entrepreneurs

  • Scheduled Caste (SC)

  • Scheduled Tribe (ST)

  • Differently Abled persons

  • Transgender persons

• 10% additional subsidy (max ₹5,00,000) for micro-enterprises

• 5% subsidy (max ₹25,00,000) for existing micro/small manufacturing enterprises expanding/diversifying and graduating to higher category

• 25% subsidy (max ₹10,00,000) on plant & machinery promoting clean or eco-friendly technologies

Eligibility

1. All new micro manufacturing enterprises in any part of Tamil Nadu

2. All new small and medium enterprises in the following 24 thrust sectors:

   • Electrical & electronics

   • Leather goods

   • Auto components

   • Pharmaceuticals

   • Solar energy

   • Export jewellery

   • Pollution control equipment

   • EV components & infrastructure

   • Cost-effective construction materials

   • Garments

   • Food processing

   • Plastic (excluding banned items)

   • Rubber

   • Biotechnology

   • Specialty & petrochemicals

   • Medical devices

   • Sports goods

   • Technical & medical textiles

   • Aerospace & defence components

   • ESDM (Electronic System Design and Manufacturing)

   • Alternatives to single-use plastics

   • E-waste processing

   • Industry 4.0

   • Traditional industries

3. All new small/medium manufacturing enterprises in 254 industrially backward blocks

4. All new agro-based small/medium enterprises in 388 blocks

5. Existing enterprises undertaking expansion/diversification

Exclusions

The following are not eligible for the capital subsidy:

• Sugar, distilleries, breweries

• Alcohol-based production units

• Fertilizer (except bio-fertilizer)

• Mining/quarrying

• Smelting industries

• Tobacco & gutka products

• Saw mills

• Cement, aluminum, calcium carbide

• Slaughterhouses

• Drug/chemical repackaging without processing

• Firecrackers

• Ozone-depleting industries

• Poultry, cyanide, caustic soda

• Nylon/rayon/polyester fiber units

• One-time use plastics

• Service-based MSMEs

• Any other enterprises excluded by Government notification

Application Process

Mode: Online

Step 1: Registration

1. Visit the MSME Department Portal

2. Click “Login / Registration” in the top ribbon

3. Fill details: Name, DOB, Aadhaar, Email ID, Mobile Number

4. Create password with uppercase, lowercase, number (min 8 characters)

5. Complete CAPTCHA and click “Register”

Step 2: Login

1. Visit the Login Page, enter credentials and CAPTCHA

2. Click “Login”

Step 3: Application Form

1. Hover over “Schemes”, select Capital Subsidy

2. Click “Apply Online” → “New Application”

3. Fill all fields, review data, agree to terms, and click “Proceed”

4. Note the reference number and click “Close”

Step 4: Upload Documents

1. Hover over “Schemes” → “Upload Documents”

2. Enter Application ID and click “Submit”

3. Upload all required documents (PDF format <200 KB)

4. Click “View” to verify uploads

Step 5: Final Submission

1. Tick all declarations

2. Click “Submit Application”

3. SMS confirmation sent to applicant

Step 6: (Optional) Track Application Status

• Track your status through the portal

• Email/SMS updates provided as applicable

Note 1: Hardcopy submission is not required
Note 2: Application must be submitted within 1 year from date of commencement of commercial production

Documents Required

1. Udyog Aadhaar Memorandum (UAM)

2. TNEB Sanction Order for power + meter card copy

3. Invoices, cash bills, stamped receipts (attested)

4. Chartered Accountant Certificate (CCA) – Annexure A

5. Commencement of Commercial Production Certificate by CA

6. Chartered Engineer Certificate (CEC) for self-fabricated machinery

7. First sale invoice post-commercial production (if applicable)

8. Lease Agreement Deed on ₹10/- stamp paper (valid for min 11 years

Sources and References

• Contact Information

• Documents Required

• FAQs (Tamil)