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.”
