1.4 Awards
District Industries Centre, Erode is an ISO 9001:2015 Certified Office
1.5 Organization Information
District Level: Office headed by the General Manager.
Directorate: Department of Industries and Commerce, GoTN
Department: Department of MSME
2.Directory
- Designation: General Manager
- Email:dicerd@gmail.com
- Phone No: 0424-2275283(89255 33946)
- Address: District Industries Centre, Chennimalai Road, SIDCO Industrial Estate, Erode-638001
SCHEMES /INITIATIVES
State Government Schemes:
Implementation of Self Employment & Entrepreneurial Schemes
a) NEW ENTREPRENEUR CUM ENTERPRISE DEVELOPMENT SCHEME [NEEDS] -Empowering First-Generation Entrepreneurs
- Designed to support educated first-generation entrepreneurs in establishing new Manufacturing and Service enterprises through entrepreneurship training, business plan preparation, and bank credit linkage.
- Project Cost: Minimum ₹10 Lakhs and maximum ₹5 Crore.
- Financial Assistance:
- 25% Capital Subsidy on Land, Building, Plant & Machinery, subject to a maximum of ₹75 Lakhs.
- Additional 10% subsidy for SC / ST / Differently Abled beneficiaries.
- 3% Interest Subvention provided by the Government.
- For projects exceeding ₹3 Crore, subsidy is restricted to ₹75 Lakhs.
- Educational Qualification: Minimum 12th Standard Pass / Degree / Diploma / ITI / Vocational Training from recognized institutions.
- Age Limit:
- 21 to 45 years – General Category
- Up to 55 years – Special Categories (SC / ST / BC / MBC / Minorities / Women / Ex-Servicemen / Differently Abled / Transgender)
- Promoter Contribution:
- 10% – General Category
- 5% – Special Category
- Income Ceiling: No income limit
- Apply Online: NEEDS Application
- More than 200 entrepreneurs have been nurtured in the Textile, Food, Agriculture-based, and Service sectors in Erode District over the last five years.
b) UNEMPLOYED YOUTH EMPLOYMENT GENERATION PROGRAMME [UYEGP] – Creating Self-Employment Opportunities for Youth
- A flagship scheme of the Government of Tamil Nadu aimed at promoting self-employment among educated unemployed youth, particularly from socially and economically weaker sections.
- Supports establishment of Business Enterprises only.
- Maximum Project Cost:
- Promoter Contribution:
- 10% – General Category
- 5% – Special Category
- Eligibility:
- Minimum 18 years of age
- Maximum 45 years (General Category)
- Maximum 55 years (Special Category)
- Educational Qualification: Minimum VIII Standard Pass
- Annual Family Income: Should not exceed ₹8 Lakhs, duly certified by Notary Public / Oath Commissioner.
- Subsidy Assistance:25% subsidy of project cost, subject to a maximum of ₹3.75 Lakhs.
- Entrepreneurship Training: Mandatory 4-day Entrepreneurship Development Programme (EDP) conducted by the Entrepreneurship Development and Innovation Institute (EDII), Government of Tamil Nadu.
- Collateral Security: No collateral required for availing loans up to ₹10 Lakhs under the scheme.
- Apply Online: UYEGP Application
A total of 272 entrepreneurs has established Business activities in Erode District during the last five years.
c) ANNAL AMBEDKAR BUSINESS CHAMPIONS SCHEME [AABCS] – To promote economic development of SC / ST Communities
- A flagship scheme of the Government of Tamil Nadu aimed at fostering entrepreneurship and enhancing the economic development of Scheduled Castes (SC) and Scheduled Tribes (ST) communities across the State
- Supports establishment of Manufacturing, Service and Business Enterprises.
- Maximum Project Cost:
- Promoter Contribution:
- Eligibility:
- Minimum 18 years of age
- Maximum 55 years for New Enterprises
- No Age limit for Expansion
- Educational Qualification:Not required
- Annual Family Income: Not required
- Subsidy Assistance: Subsidy Assistance:35% subsidy of project cost, subject to a maximum of ₹100.00 Lakhs with the following maximum limits:
₹100.00 lakh for Manufacturing enterprises
₹75.00 lakh for Service enterprises
₹50.00 lakh for Trading/Business enterprises
Interest subvention of 6% on the term loan for a maximum loan tenure of up to 10 years.
- Entrepreneurship Training: Mandatory 15-day Entrepreneurship Development Programme (EDP) conducted by the Entrepreneurship Development and Innovation Institute (EDII), Government of Tamil Nadu.
- Collateral Security: As per RBI Norms.
- Apply Online: AABCS Application
- 157 entrepreneurs from Scheduled Castes and Scheduled Tribes Communities have been supported under this scheme in manufacturing, service, and trading activities.
d) KALAIGNAR KAIVINAI THITTAM [KKT]KALAIGNAR KAIVINAI THITTAM [KKT] – Progressive Artisans Development Scheme
- A flagship scheme of the Government of Tamil Nadu aimed at providing skill development training and credit-linked financial assistance for modernization to artisans engaged in various arts and crafts trades, including tailoring, pottery, and sculpture-25 trades.
- Maximum Project Cost:
- Promoter Contribution:
- Eligibility:
- Minimum 35 years of age
- Maximum no age limit
- 5 years of work experience on Self-certification basis.
- Educational Qualification:Not required
- Annual Family Income: Not required
- Subsidy Assistance:25% subsidy on loan sanction amount, subject to a maximum of ₹50,000.
- Entrepreneurship Training: Mandatory Skill Training and Entrepreneurship Development Training Programme (Trade Specific).
- Collateral Security: No collateral required for availing loans under the scheme.
- Apply Online: KKT Application
- Economic and technical support with credit linkage has been provided to 426 artisans engaged in 25 types of craft activities in the Last 2 Years in Erode District.
e) TAMIL NADU WOMEN ENTREPRENEURS’ EMPOWERMENT SCHEME [TWEES] – To increase the share of Women contribution to State’s Economic development by Entrepreneurship
- A flagship scheme of the Government of Tamil Nadu aimed at promoting self-employment among women and contribute to the State’s MSME growth, employment generation, and inclusive economic development.
- Supports establishment of Manufacturing, Service, and Business Enterprises.
- Maximum Project Cost:
- Manufacturing / Service / Business: ₹10 Lakhs
- Promoter Contribution:
- Eligibility:
- Minimum 18 years of age
- Maximum 55 years
- Educational Qualification: Not required
- Subsidy Assistance:25% subsidy of project cost, subject to a maximum of ₹2.00 Lakhs.
- Entrepreneurship Training: Mandatory 3-day Entrepreneurship Development Programme (EDP) conducted by the Entrepreneurship Development and Innovation Institute (EDII), Government of Tamil Nadu.
- Collateral Security: No collateral required for availing loans under the scheme.
- Apply Online: TWEES Application
- 132 Women Entrepreneurs started their Enterprises and got support from the Government under this scheme within 5 months.
Central Government Schemes
a) PRIME MINISTERS EMPLOYMENT GENERATION PROGRAMME[PMEGP] – Promoting Employment through Micro Enterprise Creation
- A Government of India scheme aimed at generating employment opportunities in rural and urban areas by supporting new self-employment ventures and micro enterprises.
- Eligible Activities: Manufacturing and Service sectors (simple trading/business activities are not eligible).
- Maximum Project Cost:
- Manufacturing Sector: ₹50 Lakhs
- Service Sector: ₹20 Lakhs .
- If the total project cost exceeds ₹50 lakhs or ₹20 Lakhs for Manufacturing and Service sector respectively, the balance amount may be provided by the Banks without any Government subsidy.
- Educational Qualification:
- No minimum qualification for projects up to:
- ₹10 Lakhs (Manufacturing)
- ₹5 Lakhs (Service)
- Minimum VIII Standard Pass required for higher project costs.
- Margin Money Subsidy:
- Urban Area:
- 15% – General Category
- 25% – Special Category
- Rural Area:
- 25% – General Category
- 35% – Special Category
- Second Loan Assistance: Beneficiaries who have successfully repaid and closed their first PMEGP loan are eligible to avail a second loan under the scheme, with subsidy assistance of 15%, subject to a maximum subsidy of ₹15.00 lakh.
- Apply Online: KVIC Online – PMEGP
- A total of 509 entrepreneurs have established their Enterprises in rural and urban areas in the Manufacturing and Service sectors in Erode District during the last five years.
Joint Ventures (Central & State Sponsored Schemes)
a) PRADHAN MANTRI FORMALISATION OF MICRO FOOD PROCESSING ENTEPRISES [PMFME]
- A Government of India scheme aimed at enhancing access to credit for both new and existing micro food processing entrepreneurs by facilitating technology upgradation and supporting the formalization of enterprises through registration under the regulatory framework and compliance mechanisms. The scheme also seeks to strengthen branding and marketing initiatives to enable integration with organized supply chains. The Cost of the Subsidy under the scheme would be shared in 60:40 ratio between Central and State Governments.
- Eligible Activities: All New / Existing Micro Food Processing Enterprises.
- Proprietorship / Partnership / Private Ltd / Self Help Groups (SHG) / Farmers Producers Organization (FPO)
- Maximum Project Cost:
- Margin Money Subsidy:
-
- 35% back-end subsidy subject to a maximum of ₹10.00 Lakhs
- Apply Online: PMFME Application
- 462 Micro food enterprises have been supported under this scheme for value added food product activities such as Masala powder, Edible oils, Dairy products, Bakery products., etc in in the last 5 years in Erode District.
IMPLEMENTATION OF OTHER SCHEMES:
RECLASSIFICATION OF MSMES
Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, enterprises are classified as Micro, Small and Medium Enterprises (MSMEs) based on investment in plant & machinery/equipment and annual turnover excluding export turnover (effective from 01.04.2025).
| Category |
Investment in Plant & Machinery / Equipment |
Annual Turnover |
| Micro |
Up to ₹2.50 Crore |
Up to ₹10 Crores |
| Small |
Up to ₹25 Crores |
Up to ₹100 Crores |
| Medium |
Up to ₹125 Crores |
Up to ₹500 Crores |
MSME Policy – 2021
Capital Subsidy for New / Expansion Micro Manufacturing Enterprises
- Capital subsidy of 25% on eligible plant & machinery investment, subject to a maximum of Rs.25.00 lakhs, for eligible Micro Manufacturing enterprises established anywhere in Tamil Nadu.
Capital Subsidy for New / Expansion Small & Medium Manufacturing Enterprises
- Capital subsidy of 25% on eligible plant & machinery investment, subject to a maximum of Rs.150.00 lakhs, disbursed over a period of three years.
- Applicable to:
- Small and Medium Agro-based and Food Processing Enterprises established in any of the 388 blocks of Tamil Nadu.
- Small and Medium Manufacturing Enterprises established in SIPCOT / SIDCO industrial estates or industrially backward blocks of Erode district such as Anthiyur and Thalavadi.
Additional Capital Subsidy for Micro Manufacturing Enterprises
- Additional subsidy of 10% on plant & machinery investment, subject to a maximum of Rs.10.00 lakhs, over a period of five years, in addition to the eligible capital subsidy.
Additional Capital Subsidy for Special Category Entrepreneurs
- Additional subsidy of 5%, subject to a maximum of Rs.5.00 lakhs, for enterprises established by Women, SC/ST, Differently Abled and Transgender Entrepreneurs.
- Applicable for:
- New Micro Manufacturing Enterprises; and
- New Small & Medium Manufacturing Enterprises established in SIPCOT/SIDCO estates or industrially backward blocks such as Anthiyur and Thalavadi.
Additional Capital Subsidy for Cleaner & Environment-Friendly Technologies
- Additional subsidy of 25% on eligible plant & machinery, subject to a maximum of Rs.10.00 lakhs, for adoption of cleaner and environmentally sustainable technologies, based on certification from the Tamil Nadu Pollution Control Board.
- Applicable for eligible new Micro Manufacturing Enterprises and Small & Medium Manufacturing Enterprises established in SIPCOT/SIDCO estates or industrially backward blocks.
Additional Capital Subsidy for Scaling Up
- Existing Micro and Small Enterprises graduating to a higher category are eligible for an additional 5% capital subsidy, subject to a maximum of Rs.25.00 lakhs.
Special Capital Subsidy for Thrust Sector Enterprises
- Special capital subsidy of 25% on eligible plant & machinery investment, subject to a maximum of Rs.150.00 lakhs, disbursed over three years, for Micro, Small and Medium Manufacturing Enterprises in thrust sectors established anywhere in Tamil Nadu.
Eligible Thrust Sectors Include:
- Electrical & Electronics
- Leather & Leather Goods
- Auto Components
- Drugs, Pharmaceuticals &Nutraceuticals
- Solar Energy Equipment
- Gold & Diamond Jewellery for Export
- Pollution Control Equipment
- Sports Goods & Accessories
- Cost-effective Building Materials
- Readymade Garments
- Food Processing
- Plastics (excluding one-time-use plastics)
- Rubber Products
- Alternatives to One-time-use Plastics
- Electric Vehicle Components & Charging Infrastructure
- Medical Devices & Components
- Technical & Medical Textiles
- Aerospace & Defence Components
- Electronic System Design & Manufacturing
- Biotechnology
- Petrochemicals & Specialty Chemicals
- Industry 4.0 Technologies
- Electronic Waste Processing
- Any other sector notified by Government from time to time.
Payroll Subsidy for New Enterprises
- Reimbursement of the employer’s contribution to EPF for the first three years from the date of commercial production, for enterprises employing more than 20 regular employees, subject to a ceiling of Rs.24,000 per employee per annum.
Low Tension Power Tariff (LTPT) Subsidy
- Eligible Micro Enterprises can avail 20% subsidy on LT power tariff for the first 36 months from the date of commencement of production or power connection, whichever is later.
Back-ended Interest Subsidy
- Existing Micro and Small Enterprises availing term loans under CGTMSE, Technology Upgradation or Modernization Schemes are eligible for 5% interest subsidy for a maximum period of five years, subject to:
- Rs.20.00 lakhs (for loans up to Rs.200.00 lakhs under CGTMSE)
- Rs.25.00 lakhs (for loans up to Rs.500.00 lakhs under Technology Upgradation/Modernization Schemes)
Generator Subsidy
- New and expansion Micro Enterprises located under rural feeder categories and installing generator sets up to 320 KVA are eligible for 25% subsidy on generator cost, subject to a maximum of Rs.5.00 lakhs.
Promotion of Energy Audit and Conservation of Energy (PEACE)
- 75% subsidy, subject to Rs.1.00 lakh, for first-time energy audits and subsequent audits after three years.
- 50% subsidy, subject to Rs.10.00 lakhs, on eligible energy-saving components for MSMEs achieving minimum 5% energy savings after audit.
Scheme for Acquiring Quality Certifications (Q-Cert)
- To encourage MSMEs to obtain product, process and quality certifications such as:
- ISO Standards, HACCP, GMP, GHP, BIS Certification, ZED Rating and other internationally recognized certifications.
- 100% reimbursement of certification and consultancy charges:
- Up to Rs.2.00 lakhs for National Certifications
- Up to Rs.10.00 lakhs for International Certifications
MSMEs renewing their existing international quality certifications are eligible for a subsidy assistance of 25% of the renewal fee, subject to a maximum ceiling of ₹1.00 lakh, provided that the Q-Cert subsidy has not been previously availed for the same certification.
Reimbursement of Stamp Duty & Registration Charges
- Micro and Small Enterprises established in backward blocks are eligible for 50% reimbursement of stamp duty and registration chargespaid for purchase of land intended for industrial purposes.
Subsidy for Creation of Intellectual Property Assets
Patent Registration
- MSMEs eligible to receive ₹1.00 Lakhs by producing Patent registration certificate without producing any documents made for the expenditure or 75% subsidy on patent filing cost, including first-time maintenance fee, subject to a maximum of ₹3.00 lakhs per patent by producing the documents.
Trademark / Geographical Indication (GI) Registration
- 50% subsidy on filing cost, including first-time maintenance fee, subject to a ceiling of ₹25,000 per trademark.
- 50% actual cost incurred for the registration of GI or ₹1.00 Lakh whichever is lower.
Scheme for Fund Raising through SME Exchange
- To support high-growth MSMEs in raising equity through Initial Public Offerings (IPO) on SME Exchanges, one-time assistance of 75% of listing expenditure, subject to a maximum of Rs.30.00 lakhs, is provided upon successful listing.
Micro & Small Enterprises Facilitation Council (MSEFC)
- In cases where payment for goods supplied or services rendered is not made by the buyer within 45 days or within the mutually agreed credit period, MSMEs may approach the Micro and Small Enterprises Facilitation Council (MSEFC) for recovery of the outstanding dues along with applicable interest, as per the provisions of the MSMED Act. In Tamil Nadu, six regional MSEFCs are functioning at Chennai, Coimbatore, Madurai, Tiruchirappalli, Vellore, and Thoothukudi to facilitate the resolution of delayed payment disputes. Erode District falls under the jurisdiction of the Coimbatore MSEFC.
- Documents
- MSME Policy Note -2025-26
- MSME Incentive Policy – 2021
5.Publications
- DIC Schemes Hand Book
- DIC Schemes Brochure / Pamphlet
6.Media Corner
- DIC Schemes Awareness Camp Photos
- DIC Schemes Beneficiary Success story videos and photos
7.RTI
- Public Information Officer: Thiru.P.Senthil Kumar, Manager (Economic Investigation)/Assistant Director
First Appellate Officer: Manager Credit/Deputy Director
Email:dicerd@gmail.com
Phone No: 0424-2275283 / 89255-33947
8.Web Links / URL
https://msmeonline.tn.gov.in
