Support for non-conventional fibre sector

Non-Conventional Fibre /
Yarn Manufacturing Sector

"Building a Sustainable Future"

The Tamil Nadu Government has launched a Capital Investment Subsidy Scheme for new factories / spinning mills to promote sustainable fibre and yarn production, and innovation.

Scheme Benefits

Driving Innovation in Fibre & Yarn

  • Support for developing new manufacturing technologies and infrastructure to meet international demand.
  • Encouragement of sustainable fibre and yarn production to reduce dependence on conventional fibres.

Financial Assistance

  • 25% Capital Investment Subsidy on eligible plant and machinery cost.
  • Maximum subsidy ceiling of ₹1.00 crore per unit.
  • Subsidy released in two installments:
    i) 60% after installation and commencement of production.
    ii) 40% after one year from the date of commencement of production.

Eligibility Criteria

All non-conventional fibre/yarn manufacturing mills registered as business entities in Tamil Nadu.

Machinery to be purchased directly from manufacturers or their authorized agents only.

Only new machinery purchased after issuance of guidelines is eligible (as per commercial invoice date).

Each unit/factory/spinning mill can avail this benefit only once.

Eligibility Criteria

All non-conventional fibre/yarn manufacturing mills registered as business entities in Tamil Nadu.
Machinery purchased directly from manufacturers or their authorized agents only.
Each unit/factory/spinning mill can avail this benefit only once.
Only new machinery purchased after issuance of guidelines is eligible (as per commercial invoice date).

How to Apply?

1

Prepare Proposal

Prepare a proposal in the prescribed format.

2

Submit Online

Submit online via the Single Window Portal

3

Upload Documents

Upload all required supporting documents.

4

Department Verification

The Department will verify and forward to the Technical Evaluation Committee.

5

Committee Assessment

The Committee will assess and approve the proposal upon satisfactory examination.