Tamil Nadu Industries, Investment, Promotion and Commerce Department has issued a government order enhancing the capital subsidy under the existing special scheme for technical textiles to 25% from 15%, which will be disbursed over a period of 10 years and expanding the scheme to cover medium enterprises.
On March 18, 2023, Chief Minister M.K. Stalin had released the special scheme for technical textiles, Man-Made Fibre (MMF) yarn from recycled products, MMF fabric and apparel manufacturing in the State.
As per the existing scheme, projects manufacturing eligible products in textiles, MMF yarn from recycled materials or MMF fabric can avail a special subsidy of 15% of eligible fixed assets disbursed in equal annual instalments over 10 years.
A company can choose to avail of the special capital subsidy for technical textiles, MMF yarn from recycled materials and MMF fabric from the date of commercial production or upon achieving the minimum eligible investment (which is ₹50 crore for technical textiles, ₹50 crore for MMF yarn from recycled materials or ₹100 crore for MMF fabric) and minimum eligible employment of 50 jobs, whichever is later.
In his budget speech for 2024-2025, Finance Minister Thangam Thenarasu announced that the capital subsidy for major investments under the existing policy for technical textiles would be increased from 15% to 25% and disbursed over a period of 10 years and the scheme would also be expanded to cover medium enterprises.
The government order is issued to implement the budget announcement, and eligible projects can avail of the enhanced special capital subsidy of 25% of eligible fixed assets disbursed in equal annual instalments over 10 years, V Arun Roy, Secretary, Tamil Nadu Industries, Investment, Promotion and Commerce Department, said in the order.
Published - September 04, 2024 09:43 pm IST
