AABCS Scheme

The Annal Ambedkar Business Champions Scheme (AABCS) is run by the Department of Micro, Small & Medium Enterprises (MSME), Government of Tamil Nadu. The scheme was launched to promote entrepreneurship among individuals belonging to Scheduled Castes (SC) and Scheduled Tribes (ST) communities in Tamil Nadu. Its purpose is to support new enterprises and expansion of existing ones by these communities, through capital subsidy and interest subvention on loans. The scheme is applicable across Tamil Nadu (state level) and is currently operational.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

35% Capital Subsidy: The scheme provides a subsidy equal to 35% of the eligible project cost, subject to a maximum ceiling.
6% Interest Subvention: For loans (term loans or equipment/machinery loans) sanctioned under the scheme, an interest subvention of 6% is provided for the loan tenure (up to specified period).
Eligible Project Cost Components: The project cost may include land (not exceeding 20% of project cost), plant & machinery, testing equipment, computing devices; vehicles only if integral to the business process.
New & Expansion Enterprises: The scheme supports both setting up new enterprises and expansion of existing ones by SC/ST entrepreneurs.
Sector Coverage: Manufacturing and service sectors are eligible; trading‐related projects are also eligible if they are above the threshold under the existing Unemployed Youth Employment Generation Programme (UYEGP) in Tamil Nadu.
Age & Educational Qualification: Beneficiaries can be up to 55 years of age, and there is no minimum educational qualification laid down.
Ownership & Community: The enterprise must be 100% owned by persons belonging to SC/ST communities. The applicant must be a resident of Tamil Nadu.
Convergence with Other Schemes: Beneficiaries may claim subsidies from other schemes (even those outside the Tamil Nadu government) in addition to this scheme.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Capital Subsidy	35% of Eligible Project Cost (subject to ceiling of ₹1.5 crore)	For example: If your eligible project cost is ₹4 crore, under AABCS you may get 35% of ₹4 crore = ₹1.4 crore as subsidy (within the cap). If project cost is ₹5 crore, 35% would be ₹1.75 crore but capped at ₹1.5 crore.
Interest Subvention on Loan	6% interest subvention on loans for equipment/machinery; working capital eligible interest subvention for up to 2 years	For example: Suppose you take a bank loan of ₹2 crore for your project and interest rate is 10 % p.a. Under the scheme, you will get interest subvention of 6 % on that loan (i.e., effectively your interest cost might reduce to 4 % p.a) for the loan tenure (or as per scheme rules). Also, working capital portion may get subvention for up to 2 years.
Margin Money/Loan Access	The subsidy may be provided upfront to constitute the margin money requirement for credit linkage	For example: If your project has a bank loan part and you need promoter’s margin, the subsidy under AABCS may be released upfront to meet that margin money requirement so you can secure the credit linkage.

Eligibility Criteria

Who can apply:

Must be a resident of Tamil Nadu.
Must belong to the SC or ST community and enterprise must be 100% owned by SC/ST persons.
Age of applicant: up to 55 years at time of application.
Enterprise may be a new business or an expansion of existing business in manufacturing, services or eligible trading.

Who cannot apply:

Applicants above the age limit of 55 years.
Enterprises not 100% owned by SC/ST individuals.
Projects in sectors excluded by the scheme (e.g., purely trading projects below threshold may be ineligible) unless they exceed specified thresholds.
Applicants not willing to provide required documentation or participate in entrepreneurship/training requirements.
Firms or applicants not meeting the project cost or minimum investment norms of the scheme.

Documents Required

Identity proof (Aadhaar card, Voter ID, Passport).
Residence proof (Tamil Nadu address).
SC/ST community certificate.
Age proof (date of birth certificate).
Project proposal/business plan including cost of project, bank loan sanction letter (if applicable).
Bank account details (passbook/cancelled cheque).
Details of enterprise (new or expansion) with supporting documents (registration, Udyam/MSME etc).
Any additional documents like land records (if land cost is part of project), machinery quotations, EDP training certificate (if required) etc.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: First-time entrepreneurs and SC/ST applicants seeking full support.

Option 2: Official Government Process

Visit the official Tamil Nadu MSME Department’s portal for AABCS.
Register as a new applicant (provide Aadhaar, mobile number etc), log in and fill the online application form.
Fill in details of enterprise (new or expansion), project cost, bank/sanction details, upload community certificate, age proof etc.
Submit the form and await scrutiny by District/State level approval committees.
On sanction, link with bank/financial institution for credit-linkage, execute loan, and receive subsidy & interest subvention benefits as per scheme.

Option 3: Offline Guidance via District Industries Centre (DIC)/MSME Office

Visit your local District Industries Centre (DIC) or MSME office in Tamil Nadu for advisory support, document verification and assistance with e-application.
After preliminary guidance, proceed to online application or as per district instructions.

Power Combos with The Scheme