Annal Ambedkar Business Champions Scheme (AABCS)

The Annal Ambedkar Business Champions Scheme (AABCS) is a Tamil Nadu government initiative designed to support entrepreneurs from Scheduled Caste (SC) and Scheduled Tribe (ST) communities. It offers financial assistance, including capital subsidies and interest support, to help start or grow small businesses. 

The scheme also provides training to improve business skills and long-term success. Its main goal is to reduce economic barriers, create employment, and promote self-reliance among marginalised groups. By enabling easier access to funding and knowledge, the AABC Scheme helps beneficiaries build sustainable livelihoods and contribute to the economic growth of their communities.

The Annal Ambedkar Business Champions Scheme is a flagship initiative by the Government of Tamil Nadu, launched through the Department of Micro, Small and Medium Enterprises. It is designed to uplift entrepreneurs from Scheduled Caste (SC) and Scheduled Tribe (ST) communities by offering financial support and skill-building opportunities. The scheme aims to remove barriers that often prevent these communities from starting or expanding businesses. Here are the main components of the scheme:

• Capital subsidy of 35% on eligible project costs, up to a maximum of ₹1.5 crore

• Interest subvention of 6% on term loans used for machinery or equipment

• Mandatory training in entrepreneurship development for all selected applicants

• Applicable sectors include manufacturing, services, and approved trading activities

• Open to both new and existing enterprises owned entirely by SC/ST individuals

• No minimum educational qualification is required for applicants

This structured support enables SC/ST entrepreneurs to establish viable businesses and contribute to economic growth in Tamil Nadu.

The Annal Ambedkar Business Champions Scheme aims to drive inclusive growth in Tamil Nadu by empowering SC/ST entrepreneurs through financial support and business opportunities. Here are its key objectives:

• Promote economic development by enabling SC/ST communities to participate actively in the state's business landscape

• Encourage entrepreneurship through structured financial support and access to essential resources

• Create employment opportunities by helping beneficiaries set up businesses that can generate local jobs

• Improve quality of life for marginalised groups by fostering self-reliance and reducing dependency on wage-based work

• Bridge social and economic gaps by offering equal access to government-backed enterprise support

Starting a business can feel overwhelming when costs are high and support is limited. Here, the AABCS Scheme provides essential tools to help you succeed with ease:

Financial Support

You get a capital subsidy of 35% of your project cost, up to ₹1.5 crore. You also receive a 6% interest subsidy on loans for machinery and equipment.

Inclusive Eligibility

You don’t need any formal education to apply under this scheme. What matters is your business idea and your eligibility as an SC/ST entrepreneur in Tamil Nadu.

Support for New and Existing Enterprises

Whether you're starting fresh or growing an existing business, the scheme supports both. This gives you the flexibility to scale at your pace.

Sector Coverage

The scheme applies to manufacturing, service, and select trading activities. This allows you to choose a business that matches your interests and local market needs.

Mandatory Training

You will receive entrepreneurship training before the subsidy is released. This helps you build practical skills to manage and sustain your business.

Direct Bank Disbursement

All subsidies are credited directly to your loan account. This ensures transparency and reduces delays in accessing your funds.

No Collateral Requirement for Loan Approval

The scheme does not require any property or asset as security. This removes a major barrier for first-time entrepreneurs from marginalised communities.

To apply for the Annal Ambedkar Business Champions Scheme, you must meet the following conditions:

• Residency: You must be a permanent resident of Tamil Nadu

• Community: You must belong to a Scheduled Caste (SC) or Scheduled Tribe (ST) community

• Ownership: The business must be 100% owned by SC/ST individuals

• Age Limit: You must be between 18 and 55 years old

• Business Type: The business must be a legally recognised profit-oriented entity (sole proprietorship, partnership, or company)

• Enterprise Status: Both new and existing businesses are eligible

• Sector Eligibility: Businesses must be in manufacturing, services, or trading (above UYEGP threshold)

• Education: No minimum educational qualification is required

• Training: Entrepreneurship training by the Entrepreneurship Development and Innovation Institute is mandatory (also available for applicants in process)

• Project Cost: Eligible project cost includes land, plant, machinery, testing and computing devices

• Land Value: Land can be included in the project cost, up to 20% of the total project value

• Vehicle Inclusion: Vehicles are allowed in the project cost only if essential to the business (e.g. taxis, trucks, earth-moving, borewell or sanitary service vehicles)

• Additional Subsidies: You may also claim subsidies from central or non–Tamil Nadu government schemes like CLCSS or Coir Board schemes

When applying for the Annal Ambedkar Business Champions Scheme, it is important to keep all required documents ready to avoid delays. These documents help verify your identity, eligibility, and the viability of your business proposal. Here is the list of essential documents:

• Identity Proof: Copy of Aadhaar card or Voter ID card

• PAN Card: Mandatory for all applicants

• Passport-sized Photograph: Recent colour photo for identification

• Proof of Age: Any valid document that confirms your date of birth

• Community Certificate: Caste certificate issued by a competent authority, confirming SC/ST status

• Residence Proof: Utility bills, ration card, or any government-issued document proving permanent residency in Tamil Nadu

• Bank Account Details: A copy of your bank passbook or a cancelled cheque

• Business Plan or Project Report: A detailed plan outlining your proposed or existing business, including cost estimates and income potential

• Additional Documents (if required): Any other document as requested by authorities during verification or processing

The selection process under the Annal Ambedkar Business Champions Scheme ensures eligible SC/ST entrepreneurs receive support through a transparent, district-led approval system. Here’s how it works:

Ownership and Community Criteria

Only enterprises that are 100% owned by individuals from SC/ST communities will be considered. The business can operate as a sole proprietorship, partnership, or company, as long as it is legally recognised and profit-oriented.

District-level Screening

The District Level Sanctioning Committee (DLSC), chaired by the District Collector, is responsible for reviewing and approving applications. This is the same committee functioning under the NEEDS Scheme, with additional members specific to AABCS.

Application Submission

The General Manager of the District Industries Centre (DIC) reviews applications and submits shortlisted proposals with recommendations to the DLSC.

Special Members for SC/ST Representation

The committee must include a minimum of two members from SC/ST industry associations. If association members are unavailable, SC/ST entrepreneurs or social workers may be nominated by the DIC General Manager to represent the community.

Welfare Officer Involvement

The District Adi Dravidar Welfare Officer (DADWO) and, where applicable, the Project Officer from the Integrated Tribal Development Project (ITDP), are included as official members of the DLSC for added community oversight.

Final Authority

The Industries Commissioner and Director of Industries and Commerce holds the authority to review, modify, or override DLSC decisions if required for policy or administrative reasons.

You can apply for the Annal Ambedkar Business Champions Scheme online through a simple and secure process. Make sure you have all required documents ready before starting the application. Here are the steps to follow:

1. Visit the official website: msmeonline.tn.gov.in/aabcs

2. Click on ‘Apply Online’ and then select ‘New Application’

3. Register by entering your name, date of birth, Aadhaar number, email ID, and mobile number

4. After successful registration, log in using your credentials

5. Fill in all mandatory details in the application form

6. Upload the required documents in the specified format

7. Submit the completed form and note your reference number for tracking

The Annal Ambedkar Business Champions Scheme is a significant step by the Tamil Nadu government to foster entrepreneurship among SC/ST communities. By providing financial assistance and training, the scheme aims to create sustainable businesses and uplift marginalized groups economically. Eligible individuals are encouraged to take advantage of this opportunity to contribute to their personal growth and the state's economic development.