Subsidies

District Industries Centre, Kanyakumari has granted Capital Subsidy of Rs.40.Lakhs for 7 manufacturing enterprises during the first year of operation of the new
Industrial policy for MSMEs 2008 - 2009

Micro, Small and Medium Industries Policy - 2008

  • Released by Honourable Chief Minister of Tamilnadu on 22 - 02 - 2008.

Subsidies for Micro Manufacturing Enterprises located anywhere in Kanyakumari District

  • 15% Capital subsidy (Plant and Machinery)
  • LTPT subsidy at a flat rate of 20% for 3 years from DCP or date of power supply whichever is later
  • Subsidy equal to the assessed Value Added Tax paid by them for the first 6 years after Date of commencement of Production upto the value of investment in plant and machinery at the time of allotment of EM.No. (PartII )

Subsidy to Backward Area

  • 15% Capital subsidy (Plant and Machinery) subject to a maximum of Rs30 Lakhs.
  • 5% Additional subsidy subject to a maximum of Rs5 Lakhs to Enterprises which employ atleast 25 workers for minimum period of 3 years.(ESI, EPF records to be furnished)
  • Additional Capital subsidy of 25% subject to a maximum of Rs3 Lakhs for MSME for promotion of cleaner and environment friendly technologies.
  • LTPT subsidy at a rate of 20% for 3 years from DCP or date of power supply which ever is later.
  • Additional Capital subsidy of 5% subject to a maximum of Rs2 Lakhs will be given to enterprises set up by Women, SC/ST, Physically disabled & transgender entrepreneurs.

Industrially Backward Blocks

  • THOVALAI
  • RAJAKAMANGALAM
  • THIRUVATTAR

Industrial estates promoted by the Government and Government agencies like SIPCOT, SIDCO etc.

Subsidy for Agro Based Enterprises

  • 15% Capital subsidy (Plant and Machinery) subject to a maximum of Rs30 Lakhs.
  • 5% Additional subsidy subject to a maximum of Rs5 Lakhs to Enterprises which employ atleast 25 workers for minimum period of 3 years.(ESI, EPF records to be furnished)
  • Additional Capital subsidy of 25% subject to a maximum of Rs3 Lakhs for MSME for promotion of cleaner and environment friendly technologies.
  • LTPT subsidy at a rate of 20% for 3 years from DCP or date of power supply whichever is later.
  • Additional Capital subsidy of 5% subject to a maximum of Rs2 Lakhs will be given to enterprises set up by Women, SC/ST, Physically disabled & transgender entrepreneurs.

Special Capital Subsidy for Thrust Sector Enterprises

15% Special capital subsidy on Plant and Machinery for the following Enterprises

  • Electrical & Electronics Industry
  • Leather & Leather goods
  • Auto parts and components
  • Drugs and Pharmaceuticals
  • Solar Energy Equipment
  • Gold & Diamond Jewellery for Exports
  • Pollution Control Equipments
  • Sports Goods and Accessories
  • Cost effective building material
  • Readymade garments

Stamp Duty Exemption for MSME

  • Micro Manufacturing Enterprises will be exempted from payment of stamp duty on mortgaged and pledged documents.


  • Industrially Backward Areas
  • Enterprises in SIDCO or Government development estates for Micro and Small Enterprises will be entitled to 50% rebate on stamp duty and registration fee at the time of original allotment based on the transfer value fixed by SIDCO or Government in respect of such estates.
  • In respect of MSME set up in Industrially Backward areas, the 50% rebate on stamp duty and registration fee would be reimbursed after commencement of production.

Back Ended Interest Subsidy

  • A back ended interest subsidy at the rate of 3%(subject to a maximum of Rs. 10 lakhs per enterprise over a period of five years) will be extended on loans taken up to Rs. 100 lakhs on Credit Linked Capital Subsidy Scheme.( CLCSS )