Sector-Wise Incentives

Electric Vehicle

• 100% road tax exemption for EVs (applicable till 2022)
• 100% SGST reimbursement for EV manufacturers (applicable till 2030)
• 100% electricity tax exemption (applicable till 2025)
• 100% stamp duty exemption on land purchase (applicable till 2022)
• 15% subsidy on SIPCOT / SIDCO land cost (50% in southern districts)
• 20% capital subsidy for battery manufacturers setting up facilities in TN
• 20% additional capital subsidy for MSMEs + 6% interest subvention on term loans

Biotechnology

• 100% stamp duty concession for biotech companies setting up in TN
• Additional FSI at par with IT sector for Bio Parks and biotech clusters
• VAT exemption on captive power plants for Bio Parks
• Up to Rs 5 crore subsidy for universities setting up Bio incubators
• R&D incentive: 15% capital subsidy on R&D investment, max Rs 5 crore
• Training subsidy of Rs 7,500 per month per trainee for up to 12 months
• Patent Registration: 50% subsidy on patent filing cost, max Rs 2 lakh

Food Processing

• 3% interest subvention on term loans (+2% additional for SC/ST and women entrepreneurs)
• 3 years SGST reimbursement for investments above Rs 10 Crore
• Capital Subsidy up to Rs 2.25 Crore on eligible plant & machinery
• 50% stamp duty exemption in SIPCOT industrial estates

Information Communication Technology (ICT)

• Capital subsidy up to Rs 1.5 crore for eligible IT/ITeS companies
• 10% lease rental subsidy (maximum Rs 2 lakh per month) for office space
• 50% stamp duty reimbursement in C category districts
• 50% certification cost reimbursement (maximum Rs 5 lakh) for quality certifications
• 50% patent filing fee reimbursement (maximum Rs 3 lakh for domestic filing)
• 100% FSI relaxation for IT/ITeS parks and dedicated technology campuses

Electronics Hardware Manufacturing

• Capital subsidy up to 30% on eligible plant & machinery investment
• Land lease subsidy up to 50% on SIPCOT/SIDCO industrial land
• 50% stamp duty exemption for land and property registration
• Training subsidy: Rs 4,000 per month per trainee (Rs 6,000 for women trainees)
• Interest subsidy up to 5% on term loans for a period of 6 years
• Electricity tax exemption for 5 years from the date of commercial production
• Environmental protection subsidy of Rs 30 lakhs or 25% of ETP cost, whichever is lower
• 50% subsidy on patent registration + quality certification costs

Textile

• Spinning: 2% interest subvention on term loans for spinning mills
• Handloom: Free power supply of 200 units on bi-monthly basis for handloom weavers
• Power Loom: Free power supply of 750 units on bi-monthly basis + 75% reimbursement on skilling cost
• Processing: 50% of project cost subsidy, maximum Rs 75 crore for processing units
• Knitting / Apparel / Garments: 40% of project cost subsidy, maximum Rs 40 crore
• Technical Textiles: 9% of project cost subsidy, maximum Rs 9 crore
• Textile Parks: 50% stamp duty concession + 40% of project cost subsidy

Standard & Location-Based Benefits

• Capital subsidy up to Rs 2.25 crore on eligible plant & machinery
• Electricity tax exemption for 2 to 5 years depending on investment size
• Southern Districts: 5% additional capital subsidy + 100% stamp duty exemption
• Energy & Water audit subsidy: Up to Rs 50,000 per audit

Aerospace & Defence

• 10% Anchor unit subsidy, maximum Rs 10 crore (for the first 10 anchor companies)
• 10% capital subsidy for MSMEs in aerospace sector, maximum Rs 10 crore
• Rs 10,000 training reimbursement per trainee for up to 50 trainees
• 20% concession on SIPCOT land cost (applicable till 2022)
• 50% SGST refund for MRO (Maintenance, Repair & Overhaul) operators
• 100% electricity tax exemption for 10 years from date of commercial production
• 50% stamp duty reimbursement on land and property registration
• 25% capital subsidy on Effluent Treatment Plant (ETP) installation
• Special incentive package for investments above Rs 300 crore (case-by-case basis)