Govt. introduces schemes to help entrepreneurs affected by COVID-19

The Government of Tamil Nadu has sanctioned INR 50 million for the implementation of Entrepreneurs Relief and Assistance (CARE) scheme during 2022-23. with two components – a credit scheme linked to subsidies and an incentive scheme.

The subsidy-related credit scheme is intended for entrepreneurs whose business has been affected by the pandemic to re-establish them or start a new business either by themselves or through their legal successors. The incentive scheme is intended for those who undertake technological upgrading/modernization of their enterprises.

Individuals/proprietorships and partnerships whose business has been affected by the economic consequences of the pandemic in 2020-21 and 2021-22 are eligible for the program, which can cover businesses in the manufacturing and service sectors. “The scheme can be implemented for one year, i.e. 2022-2023,” the government order states.

The maximum project cost can be ₹5 crore and the maximum capital subsidy limit will be ₹25 lakh. Since these entrepreneurs are experienced, training in an entrepreneurship development program may not be mandatory for a subsidy-linked credit scheme.

As far as the incentive scheme is concerned, Micro, Small and Medium Enterprises (MSMEs), which have undertaken technological upgradation/modernization by adding machinery and equipment, are only eligible for the subsidy, provided they are affected by the economic consequences of the pandemic in 2020-21 and 2021-22. .

“MSMEs are entitled to avail 25% on the value of plant and machinery subject to a maximum of Rs 25 lakh as capital subsidy,” said the order issued by V. Arun Roy, secretary, MSME department. “Re-establishment of plant and machinery will be admissible in exceptional cases with the special approval of the Commissioner for Industries and the Director of Industries and Commerce.”