Annal Ambedkar Business Champions Scheme
By Micro Small and Medium Enterprises Department, Government of Tamil Nadu
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
This Tamil Nadu government scheme provides a 35% capital subsidy and a 6% interest subvention on loans for SC/ST entrepreneurs to establish or expand manufacturing, services, and eligible trading businesses.
- Funding amount
- Up to ₹52.5L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Tamil Nadu
About this subsidy
The Annal Ambedkar Business Champions Scheme (AABCS) was launched by the Department of Micro, Small and Medium Enterprises, Government of Tamil Nadu. The primary objective of the scheme is to promote the economic development and inclusion of entrepreneurs from Scheduled Caste (SC) and Scheduled Tribe (ST) communities, addressing their historically low participation in various government entrepreneurship promotion subsidies. The scheme aims to empower SC/ST entrepreneurs by providing crucial financial support for setting up new enterprises or expanding existing ones across Tamil Nadu.
Under this innovative scheme, eligible SC/ST entrepreneurs can benefit from a significant 35% capital subsidy on their eligible project cost, with an upper limit of ₹1.5 Crore. Additionally, it offers a 6% interest subvention on loans taken to procure essential machinery and equipment, making access to capital more affordable. The scheme is designed to cover enterprises involved in manufacturing, services, and certain trading activities, promoting a diverse range of business ventures.
The implementation of the AABCS is overseen by the Micro, Small and Medium Enterprises Department through the Industries Commissioner and Director of Industries & Commerce (ICDIC). Support for implementation is also provided by key ecosystem enablers such as FaMeTN, Entrepreneurship Development and Innovation Institute (EDII), and StartupTN, who contribute manpower and resources. A State Level Steering Committee, comprising senior government officials, is responsible for quarterly reviews and suggesting necessary modifications to ensure the scheme's effectiveness and reach. The scheme emphasizes both financial assistance and entrepreneurship development training to build capabilities among beneficiaries.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Provider
Micro Small and Medium Enterprises Department, Government of Tamil NaduChennai · Tamil Nadu · India
Tamil Nadu's Micro, Small and Medium Enterprises Department runs state subsidy, loan and incentive schemes for micro, small and medium enterprises and for people who want to start one. The department's pages do not always agree on the details, so confirm the terms of any scheme…
Learn moreStartupTN is the Tamil Nadu government's startup and innovation mission. Its formal name is the Tamil Nadu Startup and Innovation Mission, usually shortened to TANSIM, and it sits under the Department of Micro, Small & Medium Enterprises, Government of Tamil Nadu. It works out…
Learn moreBenefits & Funding
- Amount
- Up to ₹52.5L
What You Get
- Capital Subsidy: The State Government provides a substantial 35% capital subsidy on the Eligible Project Cost, up to a maximum of ₹1.5 Crore. This translates to a direct grant of up to ₹52.5 lakh (35% of ₹1.5 Crore) per enterprise. This subsidy can also be utilized upfront to meet margin money requirements for credit linkage.
- Interest Subvention: Beneficiaries receive a 6% interest subvention on loans sanctioned by Scheduled Commercial Banks, Co-Operative Banks, Tamil Nadu Industrial Investment Corporation, and NBFCs. This subvention is applicable for the loan tenure, not exceeding 10 years, and for working capital for up to 2 years, significantly reducing the cost of borrowing.
- Entrepreneurship Development Training: All beneficiaries will receive comprehensive Entrepreneurship Development Training from the Entrepreneurship Development and Innovation Institute, enhancing their business skills and knowledge.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted online will undergo an initial screening to ensure eligibility criteria are met. Eligible applications will then be processed for the sanctioning of capital subsidy and interest subvention, which involves evaluation of the project proposals and credit linkage with scheduled commercial banks, co-operative banks, Tamil Nadu Industrial Investment Corporation, and Non-Banking Financial Companies (NBFCs). The State Level Steering Committee regularly reviews the scheme's implementation.
Application Process
- 1
Apply Online
Fill and submit the online application form on the official MSME Department website.
You - 2
- 3
- 4
- 5
- 6
- 7
- 8
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the main objective of the Annal Ambedkar Business Champions Scheme?
The scheme aims to promote the economic development of Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs in Tamil Nadu by providing financial assistance and training.
What financial benefits does the scheme offer?
The scheme offers a 35% capital subsidy on the eligible project cost, capped at ₹1.5 Crore (up to ₹52.5 lakh grant), and a 6% interest subvention on business loans.
Who is eligible to apply for this scheme?
Residents of Tamil Nadu who belong to SC/ST communities and own 100% of the enterprise. The age limit for beneficiaries is 55 years.
What types of businesses are supported under the scheme?
The scheme supports new and existing enterprises in manufacturing, services, and eligible trading activities.
Is there any educational qualification required?
No, there is no minimum educational qualification required for beneficiaries.
How can I apply for the Annal Ambedkar Business Champions Scheme?
Applications are submitted online through the official website of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu, by registering and filling out the application form with necessary documents.
Sources
Data on this page is compiled from official program and provider references.
