Government of Tamil Nadu
New Enterprise Cum Enterprise Development scheme (NEEDS)

 

In accordance with the G.O Ms No 49 MSME Dept dated 29.10.2012, the educated youth will be given entrepreneur 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. The beneficiary must be a First Generation Entrepreneur. The scheme details are as follows -


Project Cost

  • Project cost above Rs.5.00 Lakhs and not exceeding Rs.1.00 Crore.
  • Entrepreneur has to meet the cost of land, Rented/Leased Building, Technical Knowhow, Preliminary & Preoperative expenses, Working Capital Margin etc from his own source of funds.
  • 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.

Subsidy

  • 25% of the Project Cost subject to a ceiling of Rs.25.00 lakhs
  • 3% Back Ended Interest Subsidy for Bank Assisted Projects / 3% Interest Subvention for TIIC Assisted Projects.
  • However for projects costing more than Rs. 1.00 Crore, subsidy component will be restricted to Rs. 25.00 lakhs.

Place of Residence

  • The applicant should be a resident of Tamilnadu state for not less than 3 years.

Age

  • General category -  Minimum 21 years and Maximum 35 years
  • Special category  - 45 years for (SC/ST/BC/MBC/Ex-servicemen/

        Minorities/Transgender/Differently abled persons)

Educational  Qualification

  • Degree, Diploma, ITI / Vocational training from Recognized Institutions

Promoters Contribution

  • General category entrepreneurs - 10% of the project cost
  • Special category Entrepreneurs - 5% of the project cost
  • (SC/ST/BC/MBC/Ex-servicemen/Minorities/Transgender/Differentlyabled persons)

Reservation

  • 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.

Income ceiling

  • There will be no income ceiling under this scheme.

Training                                                             

  • Compulsory EDP training will be given for 1 month with stipend.         

Other conditions

  •  Assistance under the Scheme is available only for NEW Projects for which loans sanctioned specifically under the NEEDS.
  •  Entrepreneurs who have already availed subsidy linked loans under other State Government / Government of India schemes such as Prime Minister 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 or Residence certificate from Tahsildhar.
    • Copy of Degree/Diploma Certificate.
    • Community Certificate.
    • Certificate in Proof for Exservicemen /Differentlyabled /Transgender, 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.
    • EM Part-I obtained from the office of the Regional Joint Director, Chennai-32.
    • Copy of Partnership Deed, in case of partnership concern.