Both the central and state governments offer various schemes and subsidies to firms in certain sectors.
- Central Government incentives:
Modified Special Incentive Package Scheme(M-SIPS)- capital subsidy of 20% in SEZ (25% in non-SEZ) for units engaged in electronics manufacturing.
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Corporate Income Tax of 15 % for new manufacturing companies. Any new domestic company incorporated on or after 1st October 2019 making fresh investment in manufacturing shall have an option to pay income-tax at the rate of 15% (effective tax rate of 17.01% inclusive of surcharge & cess) and are not required to pay Minimum Alternate Tax. This makes India more competitive on tax rates as compared to Southeast Asian countries.
- State Government incentives:
For the list of all available incentives as per the present GST regime-
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Industrial Policy 2014:
Incentives relating to Power supply: All units with demand of more than 10 MVA will be provided with reliable supply at 110 KV or 230 KV level depending on the eligibility.
Captive power plants will be treated as eligible fixed assets for the purpose of the structured package of assistance..
Refund of 50% of the VAT paid on purchase of capital goods exclusively for captive power generation within the construction period, provided they are manufactured in Tamil Nadu.
Water: Incentives to set up desalination plants/ waste-water treatment and recycling plants
For MSME: Floor Space Index (FSI) incentive of 50% will be given for non-Multi Storyed Building.
Industrial units in existence in the state for over 10 years will be given suitable extra benefits for expansion projects
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Incentives to Micro Small & Medium Enterprises
Subsidy schemes for micro manufacturing enterprises
For MSME manufacturing units, online application available here:
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