Government of Tamil Nadu — New Scheme

Capital Investment Subsidy Scheme for Advanced Fabric Formation Machinery

Empowering Textile Units with Advanced Technology — 20% capital subsidy up to ₹1 Crore for modernization of weaving & knitting machinery.

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20%
Capital Subsidy
₹1 Cr
Max Subsidy / Unit
₹30 Cr
Annual Budget
75%
Earmarked for MSMEs
Advanced textile machinery

About the Scheme

The Government of Tamil Nadu has introduced the Capital Investment Subsidy Scheme for Advanced Fabric Formation Machinery to promote modernization, enhance productivity, and strengthen the competitiveness of textile units across the State.

This scheme supports the adoption of state-of-the-art weaving and knitting technologies, enabling the production of high-performance and value-added fabrics for both domestic and global markets.

MSMEs & Large Units Weaving & Knitting Brand New Machinery

Objectives of the Scheme

Technology Upgradation

Promote adoption of advanced technology in fabric formation.

Enhance Productivity

Boost productivity and improve fabric quality through modern machinery.

Value-Added Textiles

Encourage production of technical and high-value textiles for global markets.

Global Competitiveness

Strengthen Tamil Nadu's textile sector to compete globally.

MSME Support

Support MSMEs in modernization and expansion efforts.

₹30 Crore Annual Budget

₹15 Cr each for weaving & knitting, 75% for MSMEs.

Eligible Machinery

High-speed Shuttleless Looms

Advanced rapier, air-jet, and water-jet looms for high-speed weaving.

Circular Knitting Machines

Fine gauge single jersey / double jersey circular knitting machines.

Terry/Electronic Jacquard Circular Knitting Machines

Terry/electronic jacquard circular knitting machines for patterned fabrics.

Flatbed Knitting Machines

Full jacquard / fully fashioned flatbed knitting equipment.

Warp Knitting Machines

Tricot / Raschel warp knitting machines for technical textiles.

Preparatory Machinery

Warping & sizing machines for shuttleless looms, warping for warp knitting.

Eligible Investment

Subsidy is provided for purchase and installation of brand-new, advanced weaving and knitting machinery meeting prescribed technical specifications.

  • Brand-new advanced weaving & knitting machinery
  • Machinery meeting prescribed technical specifications
  • Equipment from manufacturers or authorized agents

Important Note

Second-hand or refurbished machinery is not eligible under this scheme. Only brand-new equipment sourced directly from manufacturers or their authorized agents qualifies.

Who Can Apply?

New Textile Units

Newly established units in Tamil Nadu.

Modernization / Expansion

Existing units undertaking upgradation.

Located in Tamil Nadu

Units must be within state boundaries.

Registered Entities

Proprietorship, Partnership, LLP, Company, etc.

Statutory Compliance

GST/Valid licenses/Statutory Clearances etc.

MSMEs & Large Units

Both categories are eligible to apply.

How It Works

Applications processed on First Come, First Served basis

1

Install Machinery

Purchase and install eligible advanced machinery in your unit.

2

Submit Application Online

Apply through the portal with all required documents.

3

First Come, First Served

Applications processed in the order received.

4

Inspection

Physical inspection by Regional Deputy Director of Textiles.

5

Evaluation & Approval

Review and approval by State Level Committee.

6

Subsidy Disbursement

Subsidy credited directly to your bank account.

Complete

Ready to Modernize Your Unit?

Take the first step towards technology upgradation. Apply online through the official portal and avail 20% capital subsidy on advanced fabric formation machinery.

Apply Now on Portal

Applications processed on First Come – First Served basis