Tamil Nadu offers attractive investment opportunities to companies that look at diversification and expansion. A special scheme (for a period of 1 year from the date of this Policy) has been designed to offer support to companies with ultimate beneficiary ownership and control from foreign countries.
Eligibility:
FDI investments in projects that are Mega and above.
Investment Promotion Subsidy
The Project shall be eligible for an Investment Promotion Subsidy of up to 40% of EFA through SGST Reimbursement for Final Products (or) Flexible Capital Subsidy (or) Fixed Capital Subsidy (or) Turnover-based Subsidy. Investment proposals from companies having relocation plans may be provided a higher set of incentives on a case-to-case basis.
Imported Machinery
Relocation of industrial projects would include the relocation of machinery from the country of relocation. Thus, new and second-hand machinery can be included under Eligible Fixed Assets.
Transport Subsidy
75% of the cost incurred on transportation and logistics towards the relocation of capital goods from the source country within the investment period, shall be reimbursed, subject to a total limit of Rs. 10 cr.
Land Cost Subsidy
For eligible projects in SIPCOT, land allotment will be made at a 10% concessional rate in “A” & “B” districts and at a 50% concessional rate in “C” districts for land up to 20% of EFA. For private land in “C” districts, 50% subsidy will be offered on cost of land as per guideline value up to an extent of 50 acres and subject to land cost not exceeding 20% of EFA and a cap of Rs. 1 cr., provided that at least 70% of the land is used for manufacturing operations.
R&D Training Incentive
R&D Training Incentive of Rs. 10,000 per person per month can be availed for 12 months, intended for personnel engaged only in core R&D in Science and Technology.
Other Standard Incentives
- Electricity tax exemption for 5 years
- Stamp duty exemption
| Concession on Stamp Duty | District Category | Promoted by |
| 50% | A & B | SIPCOT |
| 100% | C | SIPCOT/SIPCOT JV/ SIDCO |
- 25% subsidy on the cost of setting up environmental protection infrastructure (Safety & Energy, Water Conservation, Greening and Pollution Control solutions) subject to a limit of Rs. 1 cr
- Subsidy of 50% of the total cost incurred for obtaining quality certifications, limited to Rs. 25 lakh for the period of investment
- 50% of the expenditure incurred by the Project will be reimbursed subject to a maximum of Rs. 30 lakh for patent, copyright, trademarks, Geographical Indicators registration.
SGST Refund on Capital Goods
If the company faces an inverted tax structure due to which it is neither able to utilize the ITC on capital goods for payment of output tax nor able to obtain a refund of the same, the Government will refund the Input SGST paid on capital goods within the standard investment period, to the extent input tax credit is admissible under TNGST Act 2017.
