As per the latest notification issued in accordance with Micro,Small and Medium Enterprises Development Act, 2006 (27 of 2006) vide S.O. 1702(E) of the Ministry of MSME, Government of India, Dt.: 1.6.2020, the Central Government, notified that the enterprises engaged in the manufacturing of products or engaged in the rendering of services shall be classified based on the composite criteria as follows:
| Type of Enterprise |
Investment in Plant & Machinery not Exceeding |
Turnover not Exceeding (excludes Export) |
|---|
| Micro |
Rs.1.00crore |
Rs.5.00crore |
| Small |
Rs.10.00crore |
Rs.50.00crore |
| Medium |
Rs.50.00crore |
Rs.250.00crore |
Type of Enterprise: Micro
Investment in Plant & Machinery not Exceeding: Rs.1.00
Turnover not Exceeding (excludes Export): Rs.5.00
Type of Enterprise: Small
Investment in Plant & Machinery not Exceeding: Rs.10.00
Turnover not Exceeding (excludes Export): Rs.50.00
Type of Enterprise: Medium
Investment in Plant & Machinery not Exceeding: Rs.50.00
Turnover not Exceeding (excludes Export): Rs.250.00
Department of MSME
The MSME Department deals with policy matters relating to the MSME sector and formulates schemes for the development of the sector.
Major institutions under the department are:
- The Commissionerate of Industries & Commerce
- The Entrepreneur Development and Innovation Institute (EDII)
- Tamil Nadu Small Industries Corporation Limited (TANSI)
- Tamil Nadu Small Industries Development Corporation (TANSIDCO)
Commissionerate of Industries and Commerce
One Stop Service Hub for MSMEs
Through the District Industries Centres, it provides a variety of services to the entrepreneurs and MSMEs, some to mention are as follows:
- Providing Escort Services to the Entrepreneurs towards identification of viable activities and preparation of Project Profiles for assistance from financial Institutions/Banks.
- Organising Entrepreneurship and skilled Development Training Programmes.
- Facilitating MSMEs in getting various Statutory Approvals, Clearances, Licenses and their renewals through Single Window Clearance Mechanism.
- Facilitating Entrepreneur in filling UAM (Udyog Aadhaar Memorandum).
- Sanction and Disbursement of Incentives and Subsidies to MSMEs, as per MSME Policy of GoTN.
- Export Promotion through the Export Promotion Cell in the District Industries Centres.
- Facilitating MSMEs in getting payment of dues from the large Industries through the Micro and Small Enterprises Facilitation Councils.
- Implementing Credit Linked Subsidy Schemes, Rehabilitation Assistance Schemes and various other Schemes of Government of India in the State.
1.Incentive Schemes
a) Capital Subsidy
Guidelines for availing Capital Subsidy
The following incentives and concessions are being extended to micro, small and medium enterprises in the State:
- 25% capital subsidy on the value of eligible plant and machinery, subject to a maximum of Rs.150.00 lakh.
- Additional capital subsidy for enterprises set up by Women / Scheduled Caste / Scheduled Tribe / Differently Abled and
- Additional Capital subsidy 10% for eligible micro enterprises on the investment made in plant and machinery value, subjected
- All existing Micro and Small Manufacturing Enterprises setup anywhere in Tamil Nadu graduating to higher category by
- Additional Capital Subsidy at the rate of 25% of plant and machinery value installed to promote such technology subjected to
- 25% Capital Subsidy on eligible plant and machinery value for Small and Medium Agro-based and Food processing enterprises
Eligible Enterprises
- 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
- Electrical and electronic industry
- Leather and leather goods
- Auto parts and components
- Drugs and pharmaceuticals
- Solar energy equipment
- Gold / Diamond jewelry for exports Pollution control equipment’s
- Electric Vehicle components, charging infrastructure and components
- Cost - effective building material
- Readymade garments
- Food processing
- Plastic (except ‘one-time use and throw away plastics’)
- Rubber
- Biotechnology
- Petro Chemicals and Specialty Chemicals
- Medical Devices, Equipment and Components
- Sports goods and accessories
- Technical Textiles and Medical Textiles
- Aero Space, Defence Applications and Components
- Electronic System Design and Manufacturing
- Alternate products for ‘one time use and throwaway plastics’
- Electronic Waste Processing
- Industry 4.0 Traditional Industries.
- 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
b) Low Tension Power Tariff power subsidy (LTPT)
Guidelines for availing Low Tension Power Tariff power subsidy
Following category of Enterprises/activities are only eligible for LTPT subsidy:
Eligible Enterprises:
- All new Micro manufacturing enterprises established anywhere in the State
- Existing Micro Manufacturing Enterprises which have taken up substantial expansion/diversification of the existing activities
- Micro enterprises using Low Tension Power supply (Tariff IIIB) will alone be eligible to avail of this subsidy
Expansion / Diversification Enterprises:
Existing Manufacturing Enterprises of the above categories which have taken up substantial expansion / diversification of the
c) Generator subsidy.
Guidelines for availing Generator Subsidy
Following category of manufacturing Enterprises/activities are eligible for generator subsidy:
Eligible Enterprises:
All new and existing Micro, Manufacturing Enterprises with Generator capacity upto 320 KVA.
Ineligible Enterprises
Following list of Enterprises/activities are not eligible for generator subsidy:
- Micro, Small & Medium Service Enterprises.
- All applications filed after six months from the date of purchase of the generator set or date of installation of the generator
d) Back - Ended Interest Subsidy
Guidelines for availing Back - Ended Interest Subsidy
Eligible enterprises
Micro and Small Enterprises who have availed term loan under Technology upgradation / modernization schemes, National Equity
Existing Micro and Small Enterprises, which upgrade their existing plant and machinery with the state-of-the-art technology, with
Quantum of Assistance
Credit Guarantee Fund Trust Scheme (CGTMSE):
The interest shall be at the rate of 5% for a maximum of 5 years only
Technology up-gradation / modernization Scheme (TUF):
The interest shall be at the rate of 5% for a maximum of 5 years
Nodal Agency
- TIIC - In respect of term loan sanctioned by TIIC.
- SIDBI - In respect of term loan sanctioned by SIDBI.
- General Managers of DICs - In respect of term loan sanctioned by Banks.
Mode of payment of subsidy
Interest subsidy shall be reimbursed on a quarterly basis to the financial institutions. The units should be prompt in repayment
e) Promotion of Energy Audit and Conservation of Energy (PEACE)
Guidelines for availing Energy Audit Subsidy
Preamble
The Government have introduced Promotion of Energy Audit and Conservation of Energy (PEACE) scheme for promoting Energy
Objectives of the Schemes
- To create awareness & understanding of the importance and implication of energy audit and conservation of energy.
- Incentives MSMEs to undertake Audit.
- To enable MSMEs to adopt suitable techniques /technologies to achieve energy efficiency by extending subsidy.
i. PEACE - Incentive for conducting detailed energy audit
- Main objective is to identify the major sources of energy in use, identifying the lapses in energy usage, identifying areas to
- Eligible MSMEs shall file its claim within one year from the date of completion of Energy Audit.
- Bureau of Energy Efficiency empaneled energy auditing firms/Cos., (with auditing teams led by Bureau of Energy Efficiency
Quantum of Subsidy
- 75 % of the Energy Audit cost subject to a Maximum of Rs.1.00 lakh per energy audit per unit.
- Enterprises having more than one unit may also avail this concession, separately for each unit.
- The overall ceiling on subsidy should be applied not for the original energy audit and subsequent energy audit taken together
- There should be a gap of minimum three years between the previous energy audit and the subsequent energy audit i.e., present energy audit.
- The expenditure incurred towards professional charges of conducting an Energy Audit only is eligible.
ii. PEACE - Incentive for implementing Energy Audit Recommendations
- The objective is to incentivize MSMEs to implement the recommendations of the Energy Audit Report and to optimize the
- Eligibility - All manufacturing MSMEs in the state which have undertaken energy audit and have achieved atleast 10% energy
- 50 % of the cost of the eligible components, subject to a Maximum limit of Rs.10,00,000/-.
- MSMEs must apply online to DIC/ RJD, Chennai only after three months from the date of implementation of Energy Audit
- MSMEs shall apply online to the DIC/ RJD, Chennai of the respective district in the prescribed format -II
- Investments made after the energy audit alone will be eligible for subsidy.
- The percentage of savings in specific energy consumption (KWh/Kcal per unit of product) shall be reckoned on twelve-month
- The subsidy will be released to the MSME after implementing the recommendations in the Energy Audit Report and duly
- If the unit availed loan for the purpose of energy audit, the subsidy will be released to the bank to adjust in the loan account
Ineligible enterprises
- All micro, small and medium service enterprises
- All Micro, Small and Medium Manufacturing enterprises which have availed similar subsidy for the same purpose from any
f) Scheme for acquiring Quality Certifications (Q-CERT)
Guidelines for quality certificate
The scheme aims to encourage MSMEs to acquire quality standards/certifications for process and product, such as ISO 9000/ISO
During the financial year 2020-21, a sum of Rs.60.35 lakhs has been disbursed to 92 MSMEs in the State.
g) Reimbursement of Stamp duty & Registration charges
Guidelines for stamp duty & registration charges
All new Micro and Small enterprises set up in declared 254 industrially backward blocks are eligible to avail 50% reimbursement
h) Subsidy for asset creation for Intellectual Property
Guidelines for leveraging the Intellectual Property Regime (IPR)
- Subsidy on the cost of Patent Registration in India or abroad.
- Subsidy on the cost of Trademark / Geographical Indication Registration in India or abroad
Quantum of Assistance
i. For Patent Registration
75% subsidy on the cost of filing of the application for patent Registration including the cost of first -time maintenance fee of the
ii. For Trademark Registration or Geographical Indications (GI)
50% subsidy on the cost of filing application for Trademark Registration including the cost of first-time maintenance fee for the
i) Pay Roll subsidy
Guidelines for Pay Roll subsidy
Reimbursement of employee’s contribution to the EPF for their employees for the first three years subject to a maximum of
Eligible Enterprises
- All new Micro Manufacturing Enterprises setup anywhere in Tamil Nadu.
- All new Small and Medium Manufacturing Enterprises set up in backward areas and industrial estates excluding the industrial
- All Small and Medium Agro-based and Food Processing Enterprises set up in any of the 388 blocks in the State.
j) Scheme for fund raising through SME exchange
Guidelines for subsidy for fund raising - SME
To facilitate high growth potential SMEs in the State to raise equity capital through SME Exchange utilizing IPOs, in both the
2. Self-Employment Schemes
a) New Entrepreneur cum Enterprise Development Scheme (NEEDS)
- Specially devised and specifically implemented for promoting first entrepreneurial projects of first-generation entrepreneurs
- Aspirants must be of age between 21 - 35 in general and for special (Women/BC/MBC/SC/ST/Ex-servicemen/Transgenders/Differently abled), age relaxation upto 45 years
- Higher Secondary (+2 Passed)/Degree / Diploma / ITI / Vocational Training
- Manufacturing or Service projects with Project cost from Rs.10.00 lakhs upto Rs.5.00 crore
- Promoter’s contribution 10% for General and 5% for Special Category
- Loan assistance from TIIC / Commercial Banks / TAICO Banks
- Individual Based Capital Subsidy @ 25% of the Project cost (Maximum Rs.75.00 lakhs)
- 3% Interest subvention through-out the entire repayment period
b) Unemployed Youth Employment Generation Programme (UYEGP)
- Scheme for mitigating the unemployment problems of socially and economically weaker sections of the society
- Applicants must be of age between 18-35 in general and for special (Women/Minorities/ BC/MBC/SC/ST/Ex-servicemen/Transgenders/Differently abled), age relaxation upto 45 years
- Minimum 8thPass
- Family income should be below Rs.5.00 lakh
- Manufacturing / Trading / Service projects with maximum Project costs Rs.15.00 lakh / Rs.5.00 lakh / Rs.5.00 lakh respectively
- Promoter’s contribution 10% for General and 5% for Special Category
- Loan assistance from Commercial Banks
- Individual Based Capital Subsidy @ 25% of the Project cost (Maximum Rs.2.50 lakh)
c) Prime minister Employment Generation Programme (PMEGP)
- Scheme sponsored by the Union Government to promote self-employment and to mitigate the unemployment problems
- Applicants must be of age above 18 years
- Educational qualification not required, But for Manufacturing projects above Rs.10.00 lakh and Service projects above Rs.5.00
- Manufacturing / Service projects with maximum Project costs Rs.25.00 lakh / Rs.10.00 lakh
- Promoter’s contribution 10% for General and 5% for Special Category (SC/ST/OBC / Minorities / Women, Ex-Servicemen,
- Loan assistance from Commercial Banks
- Margin Money Assistance 15% - 35%.
- Application shall be filed through online only - kviconline.gov.in/pmegpeportal/
