§1Who it is for

  • New manufacturing MSMEs and those going for expansion/diversification

Useful if

Manufacturers in backward blocks, estates, agro or thrust sectors

Do not spend time on it if

Service and trading units

§2Eligibility

  1. Manufacturing enterprises; activities listed in Annexure III are ineligible
  2. New enterprises or expansion/diversification
  3. Small/medium base subsidy only in the 254 backward blocks, Govt-promoted industrial estates, or agro-based units in any block, unless a thrust sector

§3Benefits

  • Micro: 25% of plant & machinery value, max Rs.25.00 lakh, anywhere in TN
  • Micro additional 10% on P&M, max Rs.5.00 lakh
  • Small & medium: 25% of P&M value, max Rs.150.00 lakh, in three instalments - only in 254 backward blocks, Govt/SIPCOT/TANSIDCO industrial estates, or all 388 blocks for agro-based units
  • Thrust sector (23 sectors, Annexure V): special capital subsidy 25% of P&M, max Rs.150 lakh, anywhere
  • Add-ons: women/SC/ST/differently-abled/transgender +5% (max Rs.5 lakh); cleaner technology 25% (max Rs.10 lakh); EV component/charging +20% (max Rs.10 lakh); scaling up +5% (max Rs.25 lakh)

§4Norms — pattern of assistance

  1. Rates and caps as in Annexure I of the policy
  2. Small/medium subsidy paid in three instalments
  3. Claim within one year from commencement of production

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Apply to DIC within one year of commencement of production (online at msmeonline.tn.gov.in)

§7Pros and cons

Merits

  • Thrust-sector list covers 23 sectors incl. EV, electronics, food processing, technical textiles (Annexure V)

Demerits

  • Small and medium units outside backward blocks/estates get nothing unless in thrust or agro sector (Annexure I)

→Related schemes

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Sources

  1. Tamil Nadu MSME Policy 2021 (MSME Department, GoTN) - copy hosted by TANSIDCO
  2. ICAI MSME & Startup Committee - Tamil Nadu State Specific Policies (secondary)

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