Tamil Nadu Industrial Policy 2021 — Incentive Packages — Frequently Asked Questions

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.

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.

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.

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.

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).

You need Udyam Registration (or equivalent industrial registration), a CA-certified statement of Fixed Capital Investment, GSTIN, project report, land documents, and loan sanction letter (if applicable).

The scheme is rolling and always open, but incentives may be subject to availability of funds under the policy. It is advisable to apply early.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Tamil Nadu Industrial Policy 2021 — Incentive Packages, though having it can strengthen your application and unlock other benefits.

Tamil Nadu Industrial Policy 2021 — Incentive Packages is offered by Government of Tamil Nadu, a government body. It is provided as non-dilutive funding.