MSME Council

Low angle shot of the Indian national flag on a flagpole with a clear blue sky.
Menu
Updates: PhonePe & SIDBI launch Udyam Assist for easy MSME registration | Gujarat passes Jan Vishwas Bill, easing laws for MSMEs | Vizag launches grassroots entrepreneurship mission for MSMEs | Punjab promotes energy-efficient investments for MSMEs via PEDA | Chandigarh plans to become an international service hub for MSMEs | GST cuts set to boost MSME sales on e-commerce platforms | Budget 2025 raises MSME investment and turnover limits | MSME credit guarantee cover doubled to ₹10 crore | New credit cards for micro enterprises with ₹5 lakh limit | Govt to support 5 lakh first-time women and SC/ST entrepreneurs | Special schemes launched for footwear, toy, and leather MSMEs | National Manufacturing Mission boosts MSME-led industries | Food processing MSMEs to benefit from new infra and institutes

Annal Ambedkar Entrepreneurship Development Scheme (2023–24)

Overview

The Annal Ambedkar Entrepreneurship Development Scheme is a Tamil Nadu government initiative aimed at promoting entrepreneurship among individuals from Scheduled Castes (SC) and Scheduled Tribes (ST) communities. The scheme offers financial assistance to both new and existing entrepreneurs to establish or expand their businesses.

Key Features:

  • Capital Subsidy: Provides a 35% capital subsidy on eligible project costs, with a maximum subsidy of ₹1.5 crore.

  • Interest Subvention: Offers a 6% interest subvention on loans for machinery and equipment, applicable for up to 10 years.

  • Eligibility for Credit Linkage: Supports projects with or without credit linkage; for projects without credit linkage, the capital subsidy is released on a back-ended basis.

  • Enterprise Formats: Applicable to various enterprise formats, including sole proprietorships, partnerships, limited liability partnerships (LLPs), and private limited companies, provided they are 100% owned by SC/ST individuals.

  • Sector Coverage: Covers enterprises in manufacturing, services, and eligible trading sectors, excluding subsistence farming.

  • Age Limit: Beneficiaries must be between 18 and 55 years of age.

  • No Minimum Educational Qualification: There is no minimum educational requirement to apply.

Eligibility Criteria

  • Community: Applicant must belong to the SC/ST community.

  • Ownership: The enterprise must be 100% owned by SC/ST individuals.

  • Age: Applicant must be between 18 and 55 years of age.

  • Enterprise Type: Applicable to new enterprises and expansion of existing enterprises.

  • Credit Score: A minimum credit score of 650 is required.

  • Residency: Applicant must be a resident of Tamil Nadu.

Financial Terms

  • Loan Amount: Financial assistance is provided based on the project cost, with a maximum subsidy of ₹1.5 crore.

  • Interest Subvention: A 6% interest subvention is offered on loans for machinery and equipment, applicable for up to 10 years.

  • Repayment Period: Loans are provided with a repayment period of up to 10 years, depending on the nature of the project.

  • Working Capital: Working capital loans sanctioned for the project are eligible for interest subvention for a period not exceeding 2 years.

Application Process
  1. Online Application: Applications must be submitted online through the official portal: MSME Online Portal
  2. Documentation: Prepare and upload the following documents:
    • Proof of Identity: Aadhar card, Voter ID, or Passport.
    • Proof of Residence: Recent utility bills or rental agreement.
    • Business Plan: Detailed project report including financial projections.
    • Enterprise Registration: Certificate of incorporation or partnership deed.
  3. Application Review: The submitted application will be reviewed by the concerned authorities.
  4. Approval and Sanction: Upon approval, the subsidy and loan details will be communicated to the applicant.
  5. Disbursement: The capital subsidy and interest subvention will be disbursed as per the approved terms.
Key Agencies Involved

  • Tamil Nadu Industrial Investment Corporation Ltd. (TIIC): Primary agency for processing applications and disbursing loans.

  • District Industries Centers (DICs): Provide support and guidance to applicants at the district level.

  • MSME Department, Government of Tamil Nadu: Oversees the implementation and monitoring of the scheme.

Important Considerations

  • Project Cost Components: Eligible project costs include land, plant, machinery, testing equipment, and computing devices, with the cost of land not exceeding 20% of the total project cost.

  • Vehicle Eligibility: Vehicles are considered eligible if they are integral to the business process.

  • Additional Subsidies: Beneficiaries are not restricted from claiming additional capital subsidies from schemes operated by agencies not controlled by the Government of Tamil Nadu.

  • Credit Linkage: The scheme covers projects with or without credit linkage; for projects without credit linkage, the capital subsidy is released on a back-ended basis.

Conclusion

The Annal Ambedkar Entrepreneurship Development Scheme offers a significant opportunity for SC/ST entrepreneurs in Tamil Nadu to establish or expand their businesses with financial assistance and support. By providing capital subsidies and interest subventions, the scheme aims to foster economic empowerment and promote entrepreneurship among marginalized communities. Interested entrepreneurs are encouraged to visit the official portal and apply for the scheme.

  1.  
Scroll to Top