Processing Sector Initiative

Capital Investment Subsidy Scheme

To strengthen the textile value chain, the Government of Tamil Nadu has introduced a Capital Investment Subsidy Scheme for the Textile Processing Sector. This initiative focuses on sustainability, modernization, and improved efficiency to make Tamil Nadu a hub for advanced textile processing.

Investment Benefits

Comprehensive financial support tailored for different types of textile processing operations

New Units
25% Capital Investment Subsidy on eligible project cost (with a ceiling of ₹5 crore per unit).

Building the Future

  • Establishment of sustainable processing units
  • Setting up of ZLD-based Individual Effluent Treatment Plants (IETPs) in compliance with TNPCB standards.
Up to ₹5 Crore Subsidy
25% Capital Investment Support
Existing Units
25% Capital Investment Subsidy on eligible project cost (with a ceiling of ₹4 crore per unit).

Driving Modernisation

  • Expansion, modernization, and technological upgradation of units and effluent treatment facilities.
  • Enhanced capacity, energy efficiency, water efficiency, and chemical efficiency.
Up to ₹4 Crore Subsidy
25% Capital Investment Support

Priority Focus Areas

  • Processing units handling Technical Textiles / Synthetic fibre-based textiles.
  • Processing units with advanced printing machines.
  • Processing units with Continuous Dyeing/Processing Ranges, Water-Frugal Technology and other advanced machinery.
  • Processing units with sustainability initiatives (ETP, agro waste boilers, heat recovery systems, etc.).
  • Processing units with Digitalization and Automation (Industry 4.0, IoT, etc.).
Up to ₹5 Crore Subsidy
25% Capital Investment Support

Who Can Apply?

Comprehensive eligibility criteria for textile processing units

  • Dyeing Units – Chemical or natural dyeing.
  • Textile Printing Units – Screen, digital, or rotary printing.
  • Integrated Processing Units – Combined dyeing, printing, finishing.
  • Common Processing Facilities – Shared textile processing infrastructure.
  • Registered Business Entity – Proprietorship, Partnership, or LLP.
  • Located within Tamil Nadu – Unit must be Tamil Nadu–based.
  • Environmental Approvals (TNPCB) – Consent to Establish/Operate required.

Existing Units

  • Common Processing Facilities
  • Shared Effluent Treatment Plants
  • Community Processing Centers
  • Cluster Development Projects
  • Cooperative Processing Units
  • Dyeing Machines & Equipment
  • Printing Machinery
  • Finishing Equipment
  • Automated Processing Systems
  • Quality Control Instruments

Infrastructure & Civil Works

  • Effluent Treatment Plants (ETP)
  • Reverse Osmosis Plants
  • Boilers & Steam Systems
  • Processing-related Civil Works
  • Utility Infrastructure

Application Process

Simple 5 step process for getting capital investment subsidy

1

Documentation Preparation

Prepare comprehensive Detailed Project Report (DPR) with all supporting documents and compliance certificates.

2

Online Submission

Submit via Single Window Portal at https://tntextiles.tn.gov.in with complete documentation.

3

Department Verification

Application verification and forwarding to Technical Evaluation Committee for assessment.

4

Committee Evaluation

Technical committee evaluation and approval based on comprehensive criteria examination.

5

Implementation & Disbursement

Project implementation as per DPR and subsidy disbursement in scheduled instalments.

Regional Support Centers

Connect with our specialized regional teams for personalized guidance and support