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Tamil Nadu Circular Economy Investment Policy 2026
January 16 , 2026
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- The Chief Minister of Tamil Nadu has released the Tamil Nadu Circular Economy Investment Policy, 2026, in Chennai.
- The policy aims to promote the recycling, resource efficiency, and investment in circular economy industries in Tamil Nadu.
- The policy provides special incentives for recycling units and technology enablers, in addition to incentives under the MSME Policy, 2021, and Facilitating MSMEs of Tamil Nadu (FaMe TN) Sponsorship Policy.
- Companies investing at least ₹20 crore and creating a minimum of 25 net new jobs are eligible for a capital subsidy of 10% of Eligible Fixed Assets (EFA), subject to a maximum of ₹3 crore.
- The capital subsidy will be disbursed over five years in equal annual instalments after the start of commercial operations.
- Eligible units will receive reimbursement of the employer’s Employees’ Provident Fund (EPF) contribution for one year with a limit of 50 employees.
- They can get up to ₹10,000 per employee per month for Tamil Nadu-domiciled workers.
- The policy also provides skilling incentives and a payroll subsidy.
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