Tamil Nadu Industrial Policy 2021 — Incentive Packages
Government of Tamil Nadu · Central government
Tamil Nadu offers new manufacturing MSMEs 15%–35% capital subsidy, SGST refund, and interest subvention.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
The scheme’s key components include a capital subsidy of 15%–25% of eligible Fixed Capital Investment (FCI) for MSMEs in general areas, rising to 25%–35% for units in backward districts and priority sectors. The ceiling on this subsidy is ₹30 lakh for Micro enterprises, ₹1 crore for Small enterprises, and ₹3 crore for Medium enterprises. Additional support comprises an SGST refund for 5–10 years, interest subvention of 3%–5% on term loans for MSMEs, and land cost reimbursement of 25%–50% of the guideline value in SIPCOT or SIDCO parks.
The package also offers stamp duty exemption or refund, and a subsidy on electricity tariffs. Priority sectors covered under the scheme are electronics, electric vehicles, auto components, pharmaceuticals, food processing, textiles, and defence.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Tamil Nadu
- New and expanding manufacturing MSMEs in Tamil Nadu. - New and expanding manufacturing large units in Tamil Nadu.
How to apply
- Register the project on the Investing in Tamil Nadu portal at investingintamilnadu.com. - MSME applicants may instead approach the District Industries Centre (DIC) in their district. - Units located in SIPCOT or SIDCO parks must apply through the respective industrial park authority. - Submit the required documents: Udyam Registration, CA-certified FCI statement, GSTIN, project report, land documents, and loan sanction letter. - Obtain the Eligibility Certificate from TIDCO or DIC, which specifies the incentive basket and its validity period. - File annual SGST refund claims after completing GST return filing. - Submit interest subvention and capital subsidy claims, along with the Eligibility Certificate, through the prescribed channels.
Frequently asked questions
Who can apply for Tamil Nadu Industrial Policy 2021 incentives?
New and expanding manufacturing MSMEs and large industrial units in Tamil Nadu qualify, covering both greenfield projects and eligible expansion or diversification of existing units.
What capital subsidy is available for MSMEs?
Micro enterprises can claim capital subsidy of up to ₹30 lakh, small enterprises up to ₹1 crore, and medium enterprises up to ₹3 crore. The subsidy rate ranges from 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. Every benefit under the scheme — capital subsidy, SGST refund, interest subvention, land cost reimbursement, stamp duty exemption, and electricity tariff subsidy — is non-dilutive and non-repayable.
Which sectors are prioritised?
Priority sectors—electronics, electric vehicles, auto components, pharmaceuticals, food processing, textiles, and defence manufacturing—qualify for enhanced incentive rates, as do units located in backward districts.
How does the SGST refund work?
Manufacturing units in Tamil Nadu can claim an annual refund of SGST paid on goods produced and sold within the state, with the refund period ranging from 5 to 10 years based on the enterprise category and location. Claims are submitted once a year, following the filing of GST returns.
How do I apply?
Applications for the scheme are submitted through the Investing in Tamil Nadu portal (investingintamilnadu.com), or via TIDCO and SIPCOT for park-based units. MSME units may also apply through the District Industries Centre (DIC).
Details last verified on 3 August 2026. Source: the issuer's published information.