§1Who it is for

  • SC/ST entrepreneurs (100% SC/ST ownership) - new units and expansion

Useful if

SC/ST founders in TN, any sector incl. trading

Do not spend time on it if

Mixed-ownership firms

§2Eligibility

  1. Beneficiaries 100% owned by SC/ST persons
  2. New and expansion of existing enterprises
  3. Covers manufacturing, service and trading projects above the UYEGP threshold
  4. Age limit 55 years
  5. No minimum educational qualification

§3Benefits

  • 35% capital subsidy on eligible project cost, not exceeding Rs.1.5 crore
  • 6% interest subvention on machinery/equipment loans for loan tenure up to 10 years (upfront, given to banks)
  • Working capital interest subvention up to 2 years

§4Norms — pattern of assistance

  1. 35% capital subsidy, max Rs.1.5 crore
  2. Project cost includes land, plant, machinery, testing equipment, computing devices; land max 20% of project cost; vehicles only if integral to business
  3. 6% interest subvention, tenure up to 10 years, upfront to banks
  4. Projects without credit linkage allowed - subsidy then released back-ended
  5. No bar on additional capital subsidy from agencies not controlled by GoTN

§5Documents

Tick each one as you get it ready.

Project report (original and duplicate)

Community certificate (two copies)

§6How to apply

  1. 1

    Apply online only at msmeonline.tn.gov.in/aabcs/

§7Pros and cons

Merits

  • Covers trading too and has no education bar (scheme page)
  • Works without bank loan (back-ended subsidy)

Demerits

  • Average 135 days for subsidy approval in FY 2026-27 per portal dashboard
  • Only 100% SC/ST-owned units

→Related schemes

Need help with AABCS?

Eligibility check, DPR and application file — ask us on WhatsApp.

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. AABCS - scheme page, msmeonline.tn.gov.in
  2. AABCS dashboard FY 2026-27, msmeonline.tn.gov.in
  3. AABCS enclosures list (PDF), msmeonline.tn.gov.in

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.