Tamil Nadu Industrial Policy 2021 — Incentive Packages
Government of Tamil Nadu · Central government
Tamil Nadu offers new manufacturing MSMEs a 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
Key components:
- Capital subsidy: 15%–25% of eligible FCI for MSMEs in general areas; 25%–35% for backward districts and priority sectors (ceiling ₹30 lakh Micro; ₹1 crore Small; ₹3 crore Medium). - SGST refund for 5–10 years. - Interest subvention: 3%–5% on term loans for MSMEs. - Land cost reimbursement: 25%–50% of guideline value in SIPCOT/SIDCO parks. - Stamp duty exemption or refund. - Electricity tariff subsidy.
Priority sectors: electronics, EV, auto components, pharma, food processing, textiles, defence.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Tamil Nadu
- Manufacturing MSMEs in Tamil Nadu that are new or expanding - Large manufacturing units in Tamil Nadu that are new or expanding
How to apply
1. Register your project on the Investing in Tamil Nadu portal at investingintamilnadu.com. 2. MSME applicants have the option of applying via the District Industries Centre (DIC) in their district instead. 3. Units located in SIPCOT or SIDCO parks must route their applications through the industrial park authority concerned. 4. Provide the necessary documents: Udyam Registration, a CA-certified FCI statement, GSTIN, project report, land documents and the loan sanction letter. 5. Secure the Eligibility Certificate from TIDCO or the DIC, which confirms the incentive basket and its period. 6. After filing GST returns, lodge annual SGST refund claims. 7. Through the prescribed channels, submit interest subvention and capital subsidy claims together with the Eligibility Certificate.
Frequently asked questions
Who can apply for Tamil Nadu Industrial Policy 2021 incentives?
Manufacturing MSMEs that are new or expanding, along with large industrial units in Tamil Nadu, qualify for this scheme, and applications are accepted for greenfield projects as well as eligible expansion or diversification of existing units.
What capital subsidy is available for MSMEs?
Micro enterprises may receive a capital subsidy of up to ₹30 lakh, Small enterprises up to ₹1 crore, and Medium enterprises up to ₹3 crore. The subsidy amounts to 15%–25% of eligible Fixed Capital Investment in general areas, rising to 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 does not have to be repaid.
Which sectors are prioritised?
Electronics, electric vehicles, auto components, pharmaceuticals, food processing, textiles and defence manufacturing fall under the priority sectors, and units operating in these sectors as well as in backward districts qualify for higher incentive rates.
How does the SGST refund work?
Units that qualify get an SGST refund on goods manufactured and sold within Tamil Nadu, available for 5 to 10 years based on the enterprise category and location. Claims must be filed annually, after GST returns are submitted.
How do I apply?
Apply through the Investing in Tamil Nadu portal (investingintamilnadu.com), or via TIDCO and SIPCOT if your unit is park-based; MSME units may also apply through the District Industries Centre (DIC).
Details last verified on 14 September 2026. Source: the issuer's published information.