CA – 3

GENERAL ELECTIVE
ENTREPRENEURSHIP AND
SMALL SCALE BUSINESS

TAMILNADU INDUSTRIAL INVESTMENT

CORPORATION [TIIC]

N.SAI HARI HARAN

1701721036146
III B.COM “B”
 TAMILNADU INDUSTRIAL INVESTMENT
CORPORATION

Tamilnadu Industrial Investment Corporation Ltd. [TIIC] is a premier

State Financial Corporation established in the year 1949. TIIC fosters
industrial development in Tamilnadu by providing financial assistance
to industries for purchase of land, machinery and construction of
buildings. TIIC provides financial assistance at competitive interest
rates for setting up of new industrial units and for expansion /
modernisation / diversification of existing industries in Tamilnadu. It
also offers loan for service sector projects such as hotels, hospitals and
tourism related projects.

While TIIC provides assistance to micro, small, medium and large

enterprises, about 90% of the assistance goes to the micro, small and
medium enterprises [MSME] sector. Of this, about 40% goes to first
generation entrepreneurs. Thus, TIIC acts as a catalyst for industrial
promotion within the State by creating a new generation of
entrepreneurs.

TIIC has so far assisted 1,21,349 units with a cumulative sanction of

Rs.15,783.95 crores upto 31.03.2017.
 Types of Financial Assistance

TIIC offers long and medium term financial assistance in the following
forms:

 Term Loan.
 Term Loan and Working Capital Assistance under the Single
Window Scheme.
 Lease Financing for Machinery / Equipment.
 Hire Purchase Financing for Machinery / Equipment.
 Merchant Banking & Other Financial Services
 Soft Loan

Application Forms & Registration

Application form: The entrepreneurs shall apply in the prescribed
application form / format which can be downloaded from the
website or obtained on payment of the amount from Head Office or
Branch Offices of the Corporation together with the particulars
required for the processing of the Application.

Where to lodge / deposit the Application form: For loans upto

Rs.30.00 lakhs, applications are to be submitted at the concerned
Branch Offices. For loans above Rs.30.00 lakhs, the applications are
to be submitted at Head Office.

Investigation Fees: At the time of submission of application form, a

non refundable investigation fees which is based on the amount of
loan applied has to be remitted to TIIC
 Eligible Activities
Assistance is available to industrial concerns engaged in or proposing
to engage in the following:
 Manufacturing, processing or preservation of goods.

 Mining including Development of Mines.

 Generation of Electricity or any other form of energy

including wind mills.

 Setting up of Nursing Homes and Purchase of Electro

Medical equipments by Doctors and as well as Non-medical
persons.

 Maintenance, repair, testing, servicing of machinery or any

types of vehicles, sailing vessels, electrical and electronic
equipments, etc.

 Assembling, repairing or packaging of articles with the aid of

machinery or power

 Hotels / Motels / Restaurants

 Purchase of Vehicles for materials / goods / transportation

and for transport of passengers.
  Facilities for fisherman for fishing and preservation of fish
including cold storage

 Research and Development of any process or product in

relation to any of the industrial activities

 Bore well Rigs / Road laying equipment / Earth Excavators

 Business enterprises set up by qualified professionals in

management, accountancy, medicine, architecture,
engineering, etc.

Limits for Financial Assistance

The Corporation can provide term loan assistance upto Rs.300

lakhs to private or public Companies or registered Co-operative
Societies. In the case of proprietary or partnership concerns, the
loan limit is restricted to Rs.120 lakhs. Under leasing and hire
purchase, the maximum limit of assistance is Rs.250 lakhs and the
minimum is Rs.5.00 lakhs.

Jurisdiction
The Corporation can provide financial assistance for setting up
industrial concerns any where in the State of Tamil Nadu.
 Various Schemes Available

 General Scheme: Under the general scheme, term loan

assistance is provided for small and medium scale industrial
units to set up new industries and expansion /
modernisation / diversification of the existing units.

 Nursing Home Scheme: The Corporation provides assistance

for construction of nursing homes, and purchase of
electromedical equipments, in all areas including
metropolitan / Corporation areas with a minimum bed
strength of 10 nos. Non medical persons are also eligible for
assistance under this scheme.

 Transport Operator Scheme: The Corporation provides

loans for purchase of Transport vehicles viz. delivery vans,
lorries, trailers, tempos etc., to operate as Commercial
Goods Carrier and the purchase of autos, tourist taxis,
pickup vans and passenger buses (having route permits) to
be operated as Public Carriers.

 Generator Scheme: Assistance is given for installation of

power generating units for captive power consumption of
the individual units.
 Equipment Refinance Scheme (E.R.S.): Well established
industrial units with good working results and high
reputation and is in urgent need of funds for the purchase of
equipments / machinery (indigenous or imported), term
loans can be considered expeditiously under this scheme.

 Hotel Scheme: Financial assistance is considered for setting

up of hotels / motels / restaurants in order to promote
tourism and also for expansion and renovation of the
existing hotels.

 Single Window Scheme: All eligible small scale units

including tiny units, whose project outlay is within Rs.100.00
lakhs would be eligible for both term loan and working
capital assistance under the scheme.

 Ex-Servicemen (SEMFEX) Scheme: A Special scheme is being

operated in collaboration with SIDBI and Ex-Servicemen
Board for ex-serviceman. The total cost of the project under
the scheme shall not exceed Rs.15.00 lakhs.

 Mahila Udhayam Nidhi Scheme: Women Entrepreneurs can

avail assistance to set up new projects if the project cost
does not exceed Rs.10.00 lakhs.

 Refinance Scheme for Technology Development and

Modernisation (RTDM): Existing profit making Small Scale
 units which go in for modernisation/technology upgradation
can avail assistance under this scheme. The project outlay
shall not exceed Rs.50.00 lakhs. Concessional rate of interest
and lower promoter's contribution of 20% are the other
features of the scheme.

 Technology Development Fund Scheme: Government of

Tamilnadu has constituted a fund for Technological
Development and Modernisation of small scale industries.
The scheme is being operated by TIIC. The maximum loan
limit is Rs.5.00 lakhs. Assistance could be availed for
development of new products, technology
input/upgradation which should result in significant benefit
to Industry/economy/quality and better capacity utilisation
reduction in production cost. There should be benefit like
export development or import substituion technology
adoption or meet the needs of vital sectors like Defence,
Space, Research etc.

 Refinance Scheme of Assistance for Acquisition of ISO 9000

Series & Certification by SSI units (RISO 9000): Existing
profit making SSI units who are exporting and propose to
export its products can avail assistance for the acquisition of
ISO 9000 series certification under the Scheme. Lower rate
of interest and lower promoter's contribution of 15% are the
other features of the scheme. Subsidy to the extent of 75%
of the cost of acquisition subject to a maximum of
Rs.75,000/- can be availed from Government of India.
 TAHDCO Scheme: The Tamilnadu Adhi Dravidar Housing
Development Corporation (TAHDCO) provides subsidy and
margin money assistance to SC/ST entrepreneurs for setting
up SSI units and purchase of Transport vehicles. Such
entrepreneurs can avail financial assistance from the
Corporation.

 Soft Loan: TIIC also provide soft loan assistance to eligible

first generation entrepreneurs who lack adequate financial
resources. Soft loan is utilised to bridge the gap of minimum
Promoters Contribution prescribed by the Corporation.

 National Equity Fund: TIIC is the implementing agency for

the national equity fund scheme. Tiny units whose project
cost does not exceed Rs.10.00 lakhs and coming up in rural
area can avail assistance under the scheme. Promoters
contribution will be 10% of the project cost. Soft loan to the
extent 25% is available.

 Hire Purchase Scheme & Lease Financing Scheme: Existing

and financially viable SSI/MSI units with good proven track
record can avail H.P. assistance for purchase of machinery
equipments and route buses.

 Warehouse / Storage Godown:To provide

Warehouse/Storage facility predominantly for storing goods
manufactured by SSI units thereby providing a necessary
infrastructural facility to this sector.
 Marketing Assistance Scheme: To provide support to SSI
sector in Marketing their products.

 Computer Training Institute: To set up Computer Training

Institute as information technology industry is a fast
developing and vital sector with good scope.

 Marriage Hall / Community Hall / Conventional Centres: To

provide financial assistance for construction of Marriage
Halls / Conventional Centres / Community Halls, as a
business development measure.

 Commerical Complex: The scheme of assistance is

considered as a measure of growth of SSI Service Units,
Market outlet for SSI products and for small business.

 Bill Discounting / Factoring: Factoring services scheme

introduced to solve the working capital problems of SSI
units, by discounting the Bills raised by SSI units on
suppliers.

 Scheme for Qualified Professionals: The scheme is intended

for professionals to set up for first time their professional
practice / consultacy ventures. For purchase land, building,
furniture, fixtures and equipments related to profession.
Assistance for acquiring additional equipment for their
 practice for existing professional firms will also be
considered.

 Refinance Scheme for Textile Industries under Technology

Upgradation Fund (RTUF): Government of India has
launched Technology Upgradation Fund Scheme (TUFs) for
Textile and Jute Industries for a period of 5 years with effect
from 1st April 1999. SIDBI is the Nodal Agency for Small
Scale units in the Textile industry and Cotton, Ginning and
Pressing sectors

Guidelines to avail the Financial

Assistance

 Registration of Application Form

 Information to be furnished with Application

 Appraisal of the Project

 Security Documents

 Terms & Conditions of Sanction

 Disbursement Guidelines