The Hindu : Tamil Nadu News : Incentives for small, medium enterprises

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Saturday, Mar 08, 2008
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Tamil Nadu

Tamil Nadu

Incentives for small, medium enterprises

Staff Reporter

Make use of programmes, entrepreneurs told

Krishnagiri: District Collector Santhosh Babu has asked industrialists and entrepreneurs to avail themselves of the subsidy-based programmes announced by the State Government for micro, small and medium industries.

The government had announced a lot of incentives to accelerate development in the State by maximising investment, output, growth, employment and manufacturing competitiveness through infrastructure and human resources development in micro, small and medium enterprises sector.

Capital subsidy

Accordingly, micro industries set up in Krishnagiri district could get 15 per cent capital subsidy on plant and machinery, 20 per cent power tariff subsidy on low tension power for the first three years, 100 per cent subsidy on the assessed VAT for the first six years and stamp duty exemption on mortgaged and pledged documents.

Similarly, small and medium enterprises started in all blocks in the district except Krishnagiri and Hosur would be eligible for capital subsidy of 15 per cent on plant and machinery and 20 per cent power subsidy.

Employment

In addition, the Government would provide 5 per cent additional employment intensive subsidy to units for providing jobs to 25 workers for three years, 5 per cent additional capital subsidy for units set up by women and SC/ST, physically disabled persons and transgender entrepreneurs subject to maximum of Rs. 2 lakh.

In addition, a 25 per cent additional capital subsidy would be provided on the value of plant and machinery installed to promote environment friendly technologies and 20 per cent low-tension power tariff subsidy for three years from the date of starting production. The package of incentives would also be extended to agro-based industries set up in all blocks in the district.

Mr. Babu said that a special capital subsidy would be extended to micro, small and medium industries viz., electrical and electronic industries, leather and leather goods, auto parts and components, drugs and pharmaceuticals, solar energy equipment, gold and diamond jewellery for exports, pollution control equipment, sports goods and accessories and cost effective building materials and readymade garments could get 15 per cent special capital subsidy subject to a maximum of Rs. 30 lakh.

This subsidy would be provided to industries taking up substantial expansion/diversification of their existing activities on the incremental assets created towards expansion/diversification.

A back ended interest subsidy at the rate of 3 per cent would be extended on loans taken by micro, small and medium enterprises for technology upgradation and modernisation of equipment, he said.

Further information could be obtained from the General Manager, District Industries Centre, Krishnagiri.

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