In accordance with the G.O Ms No 49 MSME Dept dated 29.10.2012, the educated youth will be given Entrepreneurship Development Programme training, assisted to prepare their business plans and helped to tie up with financial institutions so as to set up new Manufacturing and Service ventures. Modifications have been made in the existing norms vide G.O. (Ms) No.13 MSME (D2) Department dated 24.4.2018. The beneficiary must be a First Generation Entrepreneur.
The scheme details are as follows:
- Project cost above Rs.10.00 Lakh and not exceeding Rs.5.00 Crore.
- Project cost includes capital expenditure and margin money for working capital
- Cost of land may be included in the project cost at Guideline Value or Market Value, prevailing as on the date of filing loan application, whichever is lower
- 25% of the Project Cost subject to a ceiling of Rs.25.00 lakh i.e., for projects costing more than Rs.1.00 crore, the subsidy will be restricted to Rs.25.00 lakh
- 3% Interest Subvention during the entire re-payment period
Place of Residence
- The applicant should be a resident of Tamil Nadu state for not less than 3 years.
- General category - Minimum 21 years and Maximum 35 years
- Special category (SC/ST/BC/MBC/Ex-servicemen/Minorities/Transgenders/Differently abled persons) - 45 years
- Degree, Diploma, ITI / Vocational training from Recognized Institutions
- Subject to satisfying eligible criteria by all the partners, partnership concerns will be considered.
- General category Entrepreneurs - 10% of the project cost
- Special category Entrepreneurs (SC/ST/BC/MBC/Ex-servicemen/Minorities/ Transgenders/Differently abled persons) - 5% of the project cost
- SC : 18%
- ST : 1%
- Differently abled : 3%
- Under this scheme, at least 50% of the beneficiaries will be women with priority accorded to destitute women subject to the condition that they possess the required qualification.
- There will be no income ceiling under this scheme.
- Compulsory EDP training will be given for 3 weeks with stipend. However, those who have already undergone similar EDP training conducted by EDI will be exempted.
- Assistance under the Scheme is only for NEW Projects.
- Entrepreneurs who have already availed subsidy linked loans under other State Government / Government of India schemes such as Prime Minister’s Rojgar Yojana(PMRY), Rural Employment Generation Programme (REGP), Prime Minister’s Employment Generation Programme (PMEGP), Unemployed Youth Employment Generation Programme (UYEGP), TamilNadu Adi Dravidar Housing & Development Corporation Limited (TAHDCO) and Self help group will not be eligible for assistance under NEEDS Scheme.
- The applicant should not be a defaulter to any Commercial Bank/ Tamil Nadu Industrial Investment Corporation Limited (TIIC)
List of Documents to be enclosed in duplicate
- Proof of Age – Copy of Birth Certificate or Transfer Certificate.
- Proof of Residence – Copy of Ration Card/Smart Card or Residence Certificate from Tahsildhar.
- Copy of Degree/Diploma Certificate.
- Community Certificate.
- Certificate in Proof for Ex-Servicemen /Differently Abled /Transgenders, wherever applicable.
- Project Report with Projected sales and cash Flow statement for the next 3 years.
- Copy of Land Document, if included in the project.
- Estimate of Building obtained from the Chartered Civil Engineer.
- Quotations for the Machinery or Equipments.
- Sworn Affidavit obtained from Notary Public in Rs.20/- Stamp Paper as per format.
- Copy of Partnership Deed, in case of partnership concern.