Who can apply for Tamil Nadu Industrial Policy 2021 incentives?

New and expanding manufacturing MSMEs and large industrial units in Tamil Nadu are eligible. Both greenfield projects and eligible expansion or diversification of existing units can apply.

What capital subsidy is available for MSMEs?

Micro enterprises can receive up to ₹30 lakh, Small enterprises up to ₹1 crore, and Medium enterprises up to ₹3 crore as capital subsidy. The subsidy rate is 15%–25% of eligible Fixed Capital Investment in general areas and 25%–35% in backward districts and priority sectors.

Is this scheme equity-free?

Yes. All benefits — capital subsidy, SGST refund, interest subvention, land cost reimbursement, stamp duty exemption, and electricity tariff subsidy — are non-dilutive and non-repayable.

Which sectors are prioritised?

Priority sectors include electronics, electric vehicles, auto components, pharmaceuticals, food processing, textiles, and defence manufacturing. Units in these sectors and backward districts receive enhanced incentive rates.

How does the SGST refund work?

Eligible units receive a refund of SGST paid on goods manufactured and sold in Tamil Nadu for 5 to 10 years, depending on enterprise category and location. Claims are filed annually after submitting GST returns.

Applications are submitted through the Investing in Tamil Nadu portal (investingintamilnadu.com) or via TIDCO and SIPCOT for park-based units. MSME units can also apply through the District Industries Centre (DIC).

Tamil Nadu Industrial Policy 2021

Tamil Nadu Industrial Policy 2021 offers a comprehensive incentive package for manufacturing units. Capital subsidy ranges from 15%–35% of Fixed Capital Investment, capped at ₹30 lakh for Micro, ₹1 crore for Small, and ₹3 crore for Medium enterprises; higher rates apply in backward districts and priority sectors. SGST refund is available for 5 to 10 years. Interest subvention of 3%–5% is provided on term loans for MSMEs. Land cost reimbursement of 25%–50% of guideline value is available for units in SIPCOT or SIDCO industrial parks. Stamp duty exemption or refund and electricity tariff subsidies are additional benefits. All incentives are equity-free with no repayment required.

Tamil Nadu Industrial Policy 2021 — Incentive Packages

Tamil Nadu Industrial Policy 2021 — Incentive Packages

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