The Tamil Nadu government has come up with a special scheme to extend benefits and subsidies to man-made fibre (MMF) yarn, MMF fabric from recycled materials and technical textiles manufacturing units.
The scheme was unveiled by Chief Minister M K Stalin.
As per the available information, the new scheme has extended the benefits on offer under the Tamil Nadu Industrial Policy 2021 and covers both new projects or expansions in MMF fabric, MMF yarn from recycled materials and technical textiles and apparel with minimum investments of Rs 100 crore, Rs 50 crore and Rs 50 crore respectively.
Manufacturing units can opt for either a special capital subsidy of 15 per cent of eligible fixed assets (EFA) disbursed over 10 years or a turnover-based subsidy depending on the number of jobs created.
If the project creates 500 to 2,000 jobs, then the ceiling for the turnover-based subsidy is 2.5 per cent of investment in EFA per annum for a period of 10 years.
In case, of employment of more than 2,000 jobs, the ceiling is 4 per cent of investment in EFA for 10 years.
Projects in these categories will also get a training subsidy of Rs. 4,000-6,000 per worker per month for 6 months for residents of Tamil Nadu/women, transgender employees, persons with disabilities or from SC/ST communities.
The new proposal is offering land allotment at a 10 per cent concessional rate for A and B category districts and at a 50 per cent concessional rate in C category districts in parks promoted by SIPCOT. Projects can also avail 5 per cent rebate in the rate of interest on term loans taken for the purpose of financing the project, for a period of 6 years.
There are incentives regarding electricity, stamp duty green industry and quality certification incentives.