Generator Subsidy

Key Features

• Eligible enterprises: Your manufacturing business (micro, small or medium) qualifies. Service enterprises are not covered under this particular subsidy. The scheme is structured to support manufacturing operations.
• Capacity & cost ceiling: The generator set you purchase must not exceed 320 kVA capacity. This ensures the scheme targets units that require moderate captive power backup. 
• Subsidy rate & maximum limit: You get 25% of the cost of the generator as subsidy, but the maximum subsidy you’ll receive is ₹5 lakh—so even if 25% of the cost is higher, the cap remains ₹5 lakh. 
• Purchase and use condition: The generator must be for captive use by the MSME unit. This is to improve power reliability for manufacturing, not for resale or purely servicing others.
• Application & timing: The scheme guidelines state you must file application within a certain timeframe after purchase or taking “effective steps” as defined in the policy - so timing is important to retain eligibility.

Financial Assistance

Eligibility Criteria

Who can apply:

• Your enterprise must be a micro, small or medium manufacturing enterprise in Tamil Nadu. 
• The generator set must be of capacity up to 320 kVA. myScheme
• The application should be made within the time-limit from the date of purchase/order/date of effective step as defined in the policy. 

Who cannot apply:

• Service sector enterprises are typically not eligible under this specific subsidy for generators.
• Generator sets beyond 320 kVA capacity are not eligible for subsidy.
• If "effective steps" (like purchase order, installation) were taken before the notified date in the policy, the unit may fall under the earlier policy and may not be eligible under this subsidy. 

Documents Required

• UDYAM/ MSME Registration Certificate of the manufacturing unit.
• Invoice / Purchase Order of the generator set (capacity ≤ 320 kVA) showing cost.
• Business registration / enterprise address proof.
• Balance sheet or audited accounts (for existing units) or declaration for new unit.
• Bank account details of the enterprise (for subsidy disbursement).
• Any additional document specified in the application form (e.g., power consumption, manufacturing details, 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: MSME units seeking a seamless application process for generator subsidy.

Option 2: Official Government Process

1. Visit the official MSME portal of Tamil Nadu or TIIC website and locate the “Generator Subsidy” scheme page. 
2. Register your enterprise (if not already) and fill in the online application form specifying generator capacity/cost etc.
3. Upload required documents (machine purchase quotation, enterprise registration, etc) and submit the application.
4. After verification, the subsidy is sanctioned. The generator purchase is executed and proof of payment/invoice is submitted.
5. The subsidy amount (25% up to ₹ 5 lakh) is credited to the enterprise’s bank account as per scheme guidelines.

Option 3: Offline Assistance via District Industries Centre (DIC) / TIIC Branch

• Visit your local DIC or TIIC branch in your district for guidance.
• Collect application forms (if offline), verify eligibility, assist with documentation and submission.
• Post submission, follow up via online portal or DIC desk.

Power Combos with The Scheme

• Generator Set / Diesel Engine Assistance Scheme
• Credit Linked Capital Subsidy Scheme
• Capital Subsidy Scheme