Tamil Nadu

Govt. rolls out schemes for aiding entrepreneurs hit by COVID-19

The Tamil Nadu government has sanctioned ₹50 crore for implementing the COVID Assistance and Relief to Entrepreneurs (CARE) Scheme during 2022-23 with two components — a subsidy-linked credit scheme and an incentive scheme.

The subsidy-linked credit scheme is aimed at entrepreneurs whose businesses were affected by the pandemic to re-establish them or to start a new enterprise either by themselves or through their legal heirs. The incentive scheme is meant for those who undertake technology upgrade/modernisation of their enterprises.

Individuals/proprietary and partnership units whose business was affected by the economic fallout of the pandemic in 2020-21 and 2021-22 are eligible for the scheme, which may cover manufacturing and service sector enterprises. “The scheme may be implemented for one year, i.e., 2022-2023,” a government order said.

The maximum project cost may be ₹5 crore and the maximum cap on the capital subsidy will be ₹25 lakh. Since these entrepreneurs are experienced, training under the entrepreneurship development programme may not be mandatory for the subsidy-linked credit scheme.

As for the incentive scheme, the micro, small and medium enterprises (MSMEs), which have taken up technology upgrade/modernisation by adding machinery and equipment, are eligible only for subsidy, provided they are affected by the economic fallout of the pandemic in 2020-21 and 2021-22.

“The MSMEs are eligible to avail themselves of 25% on the value of plant and machinery subject to a maximum of ₹25 lakh as capital subsidy,” said the order issued by V. Arun Roy, Secretary of Department of MSMEs. “Re-establishment of plant and machinery will be eligible in exceptional cases with the specific approval of the Industries Commissioner and the Director of Industries and Commerce.”

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Printable version | Jul 13, 2022 12:46:58 am | https://www.thehindu.com/news/national/tamil-nadu/govt-rolls-out-schemes-for-aiding-entrepreneurs-hit-by-covid-19/article65631815.ece