PEACE Scheme — Up to ₹10L Subsidy for Tamil Nadu MSMEs — Frequently Asked Questions

PEACE pays 50% of the cost of the eligible energy conservation components a unit installs, subject to a ceiling of ₹10,00,000. A project with ₹20 lakh of eligible spend would reach that ceiling; a smaller project receives half of its actual eligible cost. It is a reimbursement released after the work is completed, not an upfront payment.

Manufacturing MSMEs in Tamil Nadu that have already undergone an energy audit and have achieved at least a 10% reduction in energy consumed per unit of product, measured against their previous 12 months' average. Only investments made after the audit count, and there must be a minimum three-year gap between the earlier energy audit and the current one. Enterprises with several units may apply separately for each unit.

The eligible components are the technology acquired for saving energy, the replacement of equipment for energy conservation, new machinery and accessories purchased and installed for energy efficiency, and modifications, alterations or retrofits made to existing machinery and equipment for energy conservation.

Payment follows implementation. The subsidy is released after the recommendations in the energy audit report have been successfully carried out and certified by an energy auditor. If the enterprise took a loan for the implementation, the amount can be released directly to the bank and adjusted in the loan account, provided the loan is still active.

There is no closing date. The scheme runs on a rolling, always-open basis, so applications can be filed at any time through the Tamil Nadu MSME online portal.

No. PEACE is a government subsidy, so it is non-dilutive — you do not give up any shareholding and the amount does not have to be repaid. It simply reduces the cost of the energy conservation investment you have made.

It is reckoned on specific energy consumption, that is kilowatt-hours or kilocalories per unit of product. The baseline is a twelve-month average of energy consumption before the audit recommendations were implemented, compared with an average of at least three months after implementation.

The scheme requires a minimum gap of three years between the previous energy audit and the present one, so that each claim rests on a fresh audit rather than an overlapping one.

Applications are made online on the Micro, Small and Medium Enterprises Department's portal at www.msmeonline.tn.gov.in. You register with details such as your name, date of birth, Aadhaar number, email ID and mobile number, and create a password of at least 8 characters containing one upper case letter, one lower case letter and one numeric character. After logging in, choose the scheme under the Schemes menu, start a New Application under Apply Online, fill in the mandatory fields, accept the terms and declarations, and note the reference number shown on screen. You then upload the mandatory documents in the format and size the portal specifies, verify them using the View option, and submit. A confirmation goes to your mobile, and you can track the status on the portal. The scheme's government order is also available at www.msmetamilnadu.tn.gov.in.

The stated eligibility conditions for this scheme do not include DPIIT recognition. What they turn on is being a manufacturing MSME in Tamil Nadu with a completed energy audit and a verified 10% reduction in specific energy consumption. The application itself is filed through the Tamil Nadu MSME department's own portal, which requires a registered login.

PEACE Scheme — Up to ₹10L Subsidy for Tamil Nadu MSMEs is offered by Micro Small and Medium Enterprises Department, Government of Tamil Nadu, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.