No companies have applied till date to be a part of the Tamil Nadu government’s special scheme to incentivise organisations for employing women, differently abled and transgender persons.

A Government Order (GO) announcing the scheme was issued on March 12, 2024. But there has been no response from companies. Interested companies that have been in operation from April 1, 2024 are eligible to avail the scheme, which is valid till March 31, 2027.

“We are thinking of amending the GO,” a source said.

On February 19, 2024, Finance Minister Thangam Thennarsu in his 2024-25 budget speech in the Assembly announced that as the State with the highest contribution to the number of working women in industries in India and with a significant gender parity in is labour system, Tamil Nadu is a favoured destination for progressive investors. The Government then introduced a special scheme to incentivise additional women empowerment in the State.

The scheme will offer a payroll subsidy of 10 per cent of the salary of women, differently abled and transgender employees for two years to all industrial units providing direct employment to over 500 such individuals from Tamil Nadu. The GO said that the eligible employees must be domiciles of Tamil Nadu and the payroll subsidy shall exclude payment to the key managerial personnel and the members of the board of directors.

Regarding the lack of interest from corporates, sources said that since it applies to new industries , they are yet to commence production and employ over 500 persons. It applies to only direct employment and excludes contract labour. “For the second reason, we are thinking of amending the GO,” the source said.

The actual number of companies that have started operations since April 1, 2024 could not be ascertained but sources say it is numerous.

Tamil Nadu has 41 per cent of all women working in factories in India. Over the past four years, non-leather footwear industries are being established by leading companies in Villupuram, Ranipet, Vellore, Kallakurichi, Karur, Perambalur and Ariyalur with an aim to create over one lakh jobs, with 80 per cent of the workforce being rural women, Thennarasu said in his Budget 2025-26 speech.