The Annal Ambedkar Business Champions Scheme (AABCS) is a pioneering initiative by the Department of Micro, Small and Medium Enterprises (MSME), Government of Tamil Nadu. Designed to uplift entrepreneurs from Scheduled Caste (SC) and Scheduled Tribe (ST) communities, this scheme aims to bridge the gap in entrepreneurship opportunities by providing financial assistance, subsidies, and skill development training. With a focus on promoting inclusive economic growth, the AABCS offers a 35% capital subsidy and a 6% interest subvention on loans for procuring machinery, equipment, and other business-related expenses. This scheme is a game-changer for SC/ST entrepreneurs looking to establish or expand their businesses in Tamil Nadu.

Objective of AABCS Loan Subsidy

The primary objective of the AABCS is to promote economic empowerment among SC/ST entrepreneurs by addressing barriers to entrepreneurship. By offering financial incentives, technical support, and entrepreneurship development training, the scheme seeks to encourage new business ventures and the expansion of existing enterprises in manufacturing, services, and eligible trading sectors.

Key Benefits of the Scheme

1. Capital Subsidy: The State Government provides a 35% capital subsidy on the Eligible Project Cost, with a maximum subsidy limit of ₹1.5 Crore.
2. Interest Subvention: Beneficiaries receive a 6% interest subvention on loans sanctioned under the scheme.
   • The subvention applies to loans provided by scheduled commercial banks, cooperative banks, Tamil Nadu Industrial Investment Corporation (TNIIC), and Non-Banking Financial Companies (NBFCs).
   • The interest subvention is applicable for a loan tenure of up to 10 years.
   • Working capital loans are eligible for interest subvention for up to 2 years.
3. Frontend Subsidy: The capital subsidy is disbursed upfront to meet margin money requirements for credit linkage.
4. Entrepreneurship Training: All beneficiaries undergo entrepreneurship development training conducted by the Entrepreneurship Development and Innovation Institute (EDII).

Eligibility Criteria

To qualify for the AABCS, applicants must meet the following conditions;

1. Residency: The applicant must be a resident of Tamil Nadu.
2. Community: The beneficiary must belong to the SC/ST community.
3. Ownership: Enterprises supported under the scheme must be 100% owned by persons belonging to SC/ST communities.
4. Age Limit: The age of the beneficiary should not exceed 55 years at the time of application.
5. Legal Entity: The enterprise can operate as a sole proprietorship, partnership firm, or company, as per prevailing laws.
6. Project Scope:
   • Both new enterprises and expansion of existing enterprises are eligible.
   • Eligible sectors include manufacturing, services, and trading projects exceeding the threshold of the Unemployed Youth Employment Generation Programme (UYEGP).
7. No Educational Qualification Required: There is no minimum educational qualification for beneficiaries.
8. Additional Subsidies: Beneficiaries are free to claim additional capital subsidies from schemes operated by agencies outside the Government of Tamil Nadu, such as the Union Government’s Credit Linked Capital Subsidy Scheme (CLCSS) or Coir Board schemes.

Eligible Project Costs

• The project cost includes all capital investments, such as land, plant, machinery, testing equipment, and computing devices.
• Land costs may account for up to 20% of the total project cost, while vehicles are included only if integral to the business process (e.g., taxis, earth-moving equipment, borewell drilling machines, etc.).

How to Apply – Online Process

The application process for the AABCS is conducted online through the official website of the MSME Department, Government of Tamil Nadu. Follow these steps:

1. Visit the Official Website: Access the portal of the MSME Department, Government of Tamil Nadu.
2. Apply Online: On the homepage, click on “Apply Online” and then select “New Application.”
3. Register: Click on ‘Register’ and provide details such as name, date of birth, email ID, Aadhaar number, and mobile number.
4. Login: After successful registration, log in using your credentials.
5. Fill the Application Form: Complete all mandatory fields, upload the required documents, and submit the form.
6. Track Application: Save the application number for tracking the status of your application.

Essential Documents

Ensure you have the following documents ready before applying;

1. Identity proof (copy of Election ID Card/Aadhaar Card).
2. Copy of PAN Card.
3. Passport-sized photograph.
4. Proof of age.
5. Caste/Community Certificate.
6. Residence proof.
7. Bank account details.
8. Any other documents specified by the authorities.

Frequently Asked Questions (FAQs)

Q1. Who are the beneficiaries of the scheme?
A1. The scheme is exclusively for entrepreneurs belonging to SC/ST communities who are residents of Tamil Nadu.

Q2. What is the age limit to apply under the scheme?
A2. The beneficiary’s age should not exceed 55 years at the time of application.

Q3. Can anyone residing outside Tamil Nadu start a business in Tamil Nadu under the scheme?
A3. No, the scheme is only open to residents of Tamil Nadu.

Q4. Is there any income ceiling to get assistance under the scheme?
A4. No, there is no income ceiling for beneficiaries.

Q5. What does the project cost include?
A5. Project cost includes land (up to 20%), plant, machinery, testing equipment, and computing devices. Vehicles are included only if integral to the business process.

Q6. How much maximum subsidy is available under this scheme?
A6. The maximum subsidy is ₹1.5 Crore, which is 35% of the Eligible Project Cost.

Q7. Is this scheme only for new enterprises?
A7. No, both new enterprises and expansions of existing enterprises are eligible.

Q8. Will entrepreneurship development training be given to all beneficiaries?
A8. Yes, all beneficiaries will undergo training conducted by the Entrepreneurship Development and Innovation Institute (EDII).

Q9. At what rate will interest subvention be given for loans sanctioned under this scheme?
A9. A 6% interest subvention will be provided on loans sanctioned under the scheme.

Q10. For how many years will interest subvention be sanctioned for working capital?
A10. Interest subvention for working capital is available for up to 2 years.

Q11. Who are the members of the State Level Steering Committee?
A11. The committee includes secretaries from Finance, MSME, Adi Dravidar and Tribal Welfare Departments, Industries Commissioner, and Directors of relevant departments.

Q12. Is there any bar on beneficiaries claiming additional capital subsidies?
A12. No, beneficiaries can claim additional subsidies from schemes operated by agencies outside the Government of Tamil Nadu.

Why Choose This Scheme?

The AABCS is a transformative opportunity for SC/ST entrepreneurs to overcome financial and operational hurdles in starting or expanding their businesses. With substantial subsidies, attractive interest rates, and comprehensive training, the scheme empowers beneficiaries to build sustainable enterprises and contribute to Tamil Nadu’s economic growth.

Annal Ambedkar Business Champions Scheme is a significant step toward fostering inclusive entrepreneurship in Tamil Nadu. By offering financial assistance, interest subventions, and skill development training, the scheme ensures that SC/ST entrepreneurs have the tools they need to succeed.

Scheme Details & Guidelines

If you’re an aspiring entrepreneur or a business owner from the SC/ST community, don’t miss out on this incredible opportunity. Visit the official MSME Department website today and take the first step toward building your dream enterprise! For further details, refer to the official guidelines or contact the Department of MSME, Government of Tamil Nadu.