Tamil Nadu New Entrepreneur cum Enterprise Development Scheme

About Tamil Nadu New Entrepreneur cum Enterprise Development Scheme

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 in preparing 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.

• New Entrepreneur cum Enterprise Development Scheme is the financial support scheme of the Government of Tamil Nadu.
• The main objective behind launching this scheme is to encourage and support the youth of Tamil Nadu who wants to become an entrepreneur.
• This scheme is called NEEDS for short.
• The new Entrepreneur cum Enterprise Development Scheme is basically for First Generation Entrepreneurs.
• NEEDS will help the young generation youth to build a business without thinking about the financial burden and will create employment opportunities for others.
• In the New Entrepreneur cum Enterprise Development Scheme, Tamil Nadu Government will provide capital subsidies to new entrepreneurs for setting up their own income-generation business.
• Capital Subsidy of 25% of the Total Project Cost or a Maximum of Rs. 75,00,000/- will be provided to Eligible Entrepreneur under the New Entrepreneur cum Enterprise Development Scheme.
• The entrepreneur has to contribute the below-mentioned percentage of project cost on their own: –
  • For General Category: – 10% of Project Cost.
  • For Special Category: – 5% of Project Cost.
• The remaining Project Cost Amount will be provided to the Entrepreneur as a bank loan.
• Collateral will be required as per the conditions of the bank.
• There is no annual income ceiling in the New Entrepreneur cum Enterprise Development Scheme.
• An Additional 10% on Capital Subsidy will be provided to below mentioned category of Entrepreneur: –
  • Schedule Caste.
  • Schedule Tribe.
  • Disabled.
• Eligible First-Generation Entrepreneurs of Tamil Nadu can apply for capital subsidy by filling out the Online Application Form of the Tamil Nadu New Entrepreneur cum Enterprise Development Scheme.

Benefits for Tamil Nadu New Entrepreneur cum Enterprise Development Scheme

• The following benefits will be provided to New Entrepreneurship/Applicants under Tamil Nadu Government’s New Entrepreneur cum Enterprise Development Scheme (NEEDS) :-

Eligibility for Tamil Nadu New Entrepreneur cum Enterprise Development Scheme

Applicant should be a Resident of Tamil Nadu for Not Less than 3 Years.

Applicant should possess any of the following Minimum Educational Qualification:-

• 12th Pass.
• Diploma Holder.
• ITI Pass.
• Vocational Training Passed.

The Age of the Applicant should be:-

• Between 21 Years to 35 Years for General Category Entrepreneurs.
• Between 21 Years to 45 Years for below mentioned

Special Category Entrepreneur:–

• Schedule Caste.
• Schedule Tribe.
• Minorities.
• Women.
• Differently Abled.
• Backward Class.
• Transgenders.
• Ex-Servicemen.
• Most Backward Class.

Project Cost of the Applicant should be More than Rs. 10 Lakh and Less than Rs. 5 Crore.

Project Cost Contribution of Applicant should be:-

• Contribution of 10% of Total Project Cost for General Applicant.
• Contribution of 5% of Total Project Cost for Special Category Applicant.

Documents Required for Tamil Nadu New Entrepreneur cum Enterprise Development Scheme

The below-mentioned documents are required to avail of the benefit of the Tamil Nadu New Entrepreneur cum Enterprise Development Scheme:-

• Residence Proof of Tamil Nadu.
• Education Related Documents.
• Ration Card.
• Nativity Certificate. (If there is No Ration Card).
• Voter Identity Card.
• Aadhar Card.
• Passport Size Photograph.
• Caste Certificate. (If Applicable)
• Disability Certificate. (If Applicable)
• Ex-Servicemen Card. (If Applicable)
• Project Report and Quotation.Affidavit.

How to Apply for Tamil Nadu New Entrepreneur cum Enterprise Development Scheme

• New Entrepreneurs can apply for capital subsidy by filling out the Online Application Form of Tamil Nadu New Entrepreneur cum Enterprise Development Scheme.
• Tamil Nadu New Entrepreneur cum Enterprise Development Scheme Online Application Form is available on the portal of the Micro, Small, and Medium Enterprise Department of the Government of Tamil Nadu.
• The entrepreneur has to Register themselves first by filling in the details like Name, Date of Birth, Aadhar Number, Mobile Number, Email ID, and Password.
• After Registration, log in with the Email or Mobile Number and Password.
• Fill in the following details in the New Entrepreneur cum Enterprise Development Scheme Application Form steps wise:-
  • Personal Details.
  • Contact Details.
  • Education Related Details.
  • Project Details and Quotation.
• Click on Submit Button to Submit the Application Form of New Entrepreneur cum Enterprise Development Scheme.
• Application Forms and Documents will be verified by the concerned officials of the District Industries Centre.
• The selected Entrepreneur will be called for an Interview.
• After the Interview, Applications for Capital Subsidy under NEEDS will be sent to the bank for sanctioning of the loan.
• Entrepreneurship Development Programme Training will be conducted for Selected Entrepreneurs.
• Selected Entrepreneurs must attend the Training of Entrepreneurship Development Programme.
• The loan will disbursed by the bank once the applicant submits the Entrepreneurship Development Programme Training Certificate to the bank.
• The applicant will also track their Application Status of New Entrepreneur cum Enterprise Development Scheme Online.

Ineligible Business List under NEEDS

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 food stuff.

4. Sugar.

5. Distilleries, brewery and malt extraction.

6. Units utilizing molasses/ rectified spirit/de-natured spirit as raw material for manufacture of potable alcohol

7. Fertilizer manufacture and blending (excluding 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/paan/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 cracker.

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 fibres).

24. Real estate.

25. Any other enterprise/activity as may be notified by Government.

Important Links for Tamil Nadu New Entrepreneur cum Enterprise Development Scheme

Tamil Nadu New Entrepreneur cum Enterprise Development Scheme Application Form	click here
Tamil Nadu New Entrepreneur cum Enterprise Development Scheme Registration.	click here
Tamil Nadu New Entrepreneur cum Enterprise Development Scheme Login.	click here
Tamil Nadu New Entrepreneur cum Enterprise Development Scheme Application Status.	click here
Tamil Nadu New Entrepreneur cum Enterprise Development Scheme Guidelines.	click here

Contact Details for Tamil Nadu New Entrepreneur cum Enterprise Development Scheme

Tamil Nadu Micro, Small and Medium Enterprises Department Contact Details.

click here