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Tamil Nadu

New Entrepreneur-cum-enterprise Development Scheme

आवेदन प्रक्रिया
आवश्यक दस्तावेज़
अधिकतर पूछे जाने वाले सवाल
The scheme “New Entrepreneur-Cum-Enterprise Development Scheme (NEEDS)” was launched by the Department of Micro, Small and Medium Enterprises, Government of Tamil Nadu. The scheme was devised and formulated as a special scheme to assist educated youth to become first-generation entrepreneurs. Under this scheme, educated youth will be given entrepreneur training, assisted to prepare their business plans, and helped to tie up with financial institutions to set up new business ventures, besides linking them with major industrial clients. They will be assisted to avail term loans from Banks/Tamil Nadu Industrial Investment Corporation (TIIC) with capital subsidy at 25% of the project cost not exceeding ₹75 lakhs and soft loans with 3% interest subvention. The Entrepreneurship Development Institute and TIIC will play a crucial role in this process.
The scheme aims to provide training to young first-generation entrepreneurs in conceiving, planning, initiating, and launching manufacturing or service enterprises successfully. On successful completion of the training programme, they will be assisted to get term loans from Banks /Tamil Nadu Industrial Investment Corporation Limited (TIIC) to set up manufacturing or service enterprises with margin money assistance.
Objectives of the Scheme:
  1. Educated youth will be given entrepreneurship training to groom them as first-generation entrepreneurs on the essentials of conceiving, planning, initiating, and launching a manufacturing or service enterprise successfully.
  2. On completion of the training program, they would be assisted to prepare their business plans and helped to tie up with financial institutions to get term loans, to set up manufacturing or service enterprises with a project cost not exceeding ₹5 Crore and capital subsidy of 25% of the project cost not exceeding ₹75 lakhs with 3% interest subvention to be provided by the State Government.
  3. Subject to availability, they would also be provided with reservation up to 25% for allotment of Plots / Sheds in SIDCO Industrial Estates in the State.
Activities covered:
All economically viable manufacturing and service activities are eligible under this scheme subject to appraisal for their viability as per the guidelines of Tamil Nadu Industrial Investment Corporation Limited (TIIC) / Bank. Priority will be given to projects which are eco-friendly, accord importance to energy conservation, and are export-oriented.
List of Ineligible Activities:
The following activities, listed below, will not be eligible for assistance under this scheme:
  1. Any activity directly connected with agriculture.
  2. Sericulture (Cocoon rearing), Animal Husbandry like Pisciculture, Piggery, Poultry, etc.,
  3. Manufacturing of Polythene carry bags of less than 40 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing, or packaging of foodstuff
  4. Sugar
  5. Distilleries, Brewery, and Malt Extraction
  6. Units utilizing Molasses/rectified spirit/de-natured spirit as raw material for the manufacture of potable alcohol.
  7. Fertilizer manufacture and blending (Except bio-fertilizers)
  8. Mining and Quarrying Ores, minerals, etc. [Excluding polishing, cutting, crushing, etc. of mined ores/minerals]
  9. Aluminium, Iron, and Steel Smelting [Excluding foundries]
  10. Manufacturing of intoxicant items like Beedi / Pan / Cigar / Cigarette etc.,
  11. Saw Mills
  12. Cement
  13. Calcium Carbide
  14. Slaughter House
  15. Re-packing of Drugs / Medicine / Chemical, without any processing or value addition
  16. Azoic / Reactive Dyes
  17. Fire Crackers
  18. Industries manufacturing and or utilizing Ozone depleting substances
  19. Industries involving hazardous activities / classified as “Red category” by Tamil Nadu Pollution Control Board / Central Pollution Control Board
  20. Cyanide
  21. Caustic Soda
  22. Potassium Chloride
  23. Nylon, Rayon & Polyester Fibre manufacturing. [Excluding manufacture of downstream products from Nylon, Rayon & Polyester Fibre]
  24. Real Estate
  25. All types of Business activities.
Training Institute and Methodology of the Training:
The Entrepreneurship Development Programme (EDP) Training will be imparted through Entrepreneurship Development Institute, Guindy, Chennai.
The trainees will be exposed to Behavioural Components, Business Opportunity Guidance and Preparing bankable Business Plans, Information on Entrepreneurship support Institutions, Business Laws and Regulations related to Micro and Small Enterprises, Management issues, and Technical Training in the specific technology sector. An innovative methodology by combining Behavioural & Management Games, Lecture cum discussion supported by audiovisuals, Interaction with successful entrepreneurs, Intensive Technical Training, and Exposure visits will be adopted.
25% of the Project Cost subject to a ceiling of Rs.75.00 lakhs as a subsidy from the Government. However, the following expenses will not be considered for the calculation of subsidy under this scheme:
  1. Cost of rented/leased building
  2. Technical know-how
  3. Preliminary/ pre-operative expenses
  4. Working capital margin
Rate of interest:
Enterprises financed by TIIC/Banks will be charged at the rate of interest applicable to micro & small enterprises as per banking norms.
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