Annal Ambedkar Business Champions Scheme in Mahabubnagar
AABCS
Department of Micro, Small and Medium Enterprises, Government of Tamil Nadu
Guidance for businesses in Mahabubnagar
The scheme "Annal Ambedkar Business Champions Scheme (AABCS)" was launched by the Department of Micro, Small and Medium Enterprises, Government of Tamil Nadu.
At a glance
- Scheme Name
- Annal Ambedkar Business Champions Scheme (AABCS)
- Implementing Body
- MSME Department, Government of Tamil Nadu
- Capital Subsidy
- 35% of Eligible Project Cost (up to ₹1.5 crore)
- Interest Subvention
- 6% on loans
- Beneficiaries
- SC/ST entrepreneurs (100% SC/ST-owned enterprises)
- Age Limit
- 55 years
Benefits
Capital Subsidy:
- The State Government provides a 35% capital subsidy on the Eligible Project Cost, not exceeding ₹1.5 Crore. The capital subsidy sanctioned is provided front-end to the extent necessary to constitute margin money for credit linkage.
Interest Subvention:
- A 6% interest subvention is given for loans sanctioned under this scheme (by scheduled commercial banks, cooperative banks, TIIC, and NBFCs) during the loan tenure, not exceeding 10 years.
Working Capital:
- The working capital sanctioned for the project is eligible for interest subvention for a period not exceeding 2 years.
Eligibility
- The applicant should be a resident of the State of Tamil Nadu.
- The beneficiaries shall be persons belonging to SC/ST communities. Enterprises supported shall be 100% owned by persons belonging to SC/STs (sole proprietorship, partnership, or company).
- The scheme can support both new enterprises and expansion of existing enterprises.
- Eligible enterprises can be in manufacturing and services; trading-related projects above the threshold of the existing UYEGP scheme are also covered.
- The age limit for beneficiaries is 55 years; there is no minimum educational qualification.
- There is no bar on claiming additional capital subsidy from schemes operated by agencies not controlled by the Government of Tamil Nadu (e.g., CLCSS, Coir Board).
- Entrepreneurship Development Training is given to all beneficiaries by the Entrepreneurship Development and Innovation Institute (as in NEEDS). Eligible Project Cost includes capital investments (land — up to 20% of project cost, plant, machinery, testing equipment, computing devices; vehicles only where integral to the business).
Documents required
- Identity proof i.e. copy of Election ID Card/Aadhaar card
- Copy of PAN Card
- Passport size photo
- Proof of age
- Caste/Community Certificate
- Residence proof
- Bank account details
- Any other documents, if required
How to apply
- 1
Fill up the online application through the Official Website of the MSME Department, Government of Tamil Nadu.
- 2
On the home page, click "Apply Online" and then "New Application".
- 3
Click 'Register' and fill in the details like Name, Date of Birth, Email ID, Aadhaar Number & Mobile Number.
- 4
After successful registration, click 'login' and fill in all the mandatory details.
- 5
Upload all the necessary documents and submit the application form.
About the scheme
The Annal Ambedkar Business Champions Scheme (AABCS), run by the Tamil Nadu MSME Department, supports SC/ST entrepreneurs to set up or expand 100% SC/ST-owned manufacturing and service enterprises — providing a 35% capital subsidy (up to ₹1.5 crore), a 6% interest subvention, and entrepreneurship development training.
Why it matters
- Capital Subsidy:
- 35% of project cost, up to ₹1.5 crore.
- Interest Subvention:
- 6% on sanctioned loans.
- SC/ST Empowerment:
- For 100% SC/ST-owned enterprises.
- Training:
- Entrepreneurship development training for all beneficiaries.
Focus areas
- SC/ST Enterprises:
- 100% SC/ST-owned manufacturing and service businesses.
- Capital & Credit:
- Subsidy plus interest subvention.
- Entrepreneurship:
- Development training for beneficiaries.
Is this scheme right for you?
The Annal Ambedkar Business Champions Scheme empowers SC/ST entrepreneurs in Tamil Nadu to build or grow enterprises — with a substantial capital subsidy, interest subvention, and training. If you are an SC/ST entrepreneur (up to 55 years) setting up or expanding a business, this scheme can significantly reduce your costs.
Official links
Links open the issuing department's website. Always confirm the current terms there before applying.
Frequently asked questions
Who are the beneficiaries?
The beneficiaries shall be persons belonging to SC/ST communities. Enterprises supported under the scheme shall be 100% owned by persons belonging to SC/STs. The enterprises may have any legal personality allowed to conduct business for profit as per prevailing laws which include sole proprietorship, partnership, and company.
What is the age limit to apply under the scheme?
The age limit for beneficiaries will be 55 years.
Anyone residing outside Tamil Nadu State can start business in Tamil Nadu under the scheme?
No, the applicant should be a resident of Tamil Nadu State.
Is there any income ceiling to get assistance under the scheme?
No, there is no family income ceiling prescribed for assistance in setting up projects under this scheme.
What does project cost include?
The project costs include land, plant, machinery, testing equipment, and computing devices with the cost of land not exceeding 20% of the project cost. Vehicles shall be considered if it is integral to the business process.
How much maximum subsidy is available under this scheme?
Under the scheme, the State Government will provide a 35% capital subsidy on the Eligible Project Cost, not exceeding ₹1.5 Crore.
What should be the minimum qualification required to avail of the benefits of the scheme?
There shall be no minimum educational qualification for beneficiaries.
Is this scheme only for the new enterprises?
No, the scheme can support both new enterprises and the expansion of existing enterprises.
What type of businesses are covered under the scheme?
The eligible enterprises can be business enterprises in the areas of manufacturing and services. Trading-related projects which are above the threshold of assistance under the existing Unemployed Youth Employment Generation Programme (UYEGP) scheme will also be covered.
Will the Entrepreneurship Development Training be given to all beneficiaries?
Yes, Entrepreneurship Development Training will be given to all beneficiaries by Entrepreneurship Development and Innovation Institute,
At what rate will interest subvention be given for loans sanctioned under this scheme?
A 6% interest subvention will be given for loans sanctioned under this scheme.
For how many years interest subvention shall be sanctioned for working capital of the project?
The working capital sanctioned for the project shall be eligible for interest subvention for a period not exceeding 2 years.
Who are the members of State Level Steering Committee?
A State Level Steering Committee for the scheme shall be constituted with the Secretaries of Finance, Micro, Small and Medium Enterprises, Adi Dravidar and Tribal Welfare Departments, Industries Commissioner and Director of Industries and Commerce, Commissioner of Adi Dravidar Welfare and Commissioner of Tribal Welfare. This Committee will review the scheme once a quarter and suggest necessary modifications, if necessary.
Is there any bar on beneficiaries to claim additional capital subsidy?
No bar on beneficiaries to claim additional capital subsidy from schemes operated by agencies not controlled by Govt. of Tamil Nadu
How can a beneficiary apply under the scheme?
The applicant willing to avail loan under the AABCS scheme should fill up the online application through the Official Website of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu. https://msmeonline.tn.gov.in/aabcs/index.php
Apply for AABCS with a specialist
Share your number and our team prepares every document, files every form, and stays with you through sanction and disbursement.
Or check my fit firstRelated schemes
AABCS
Does this fit my business?
Connect With Us
For Any Inquiries Or Assistance, Please Feel Free To Reach Out. Our Team Is Here To Support You And Will Respond At The Earliest Convenience