NEEDS scheme

New Entrepreneur-Cum- Enterprise Development Scheme from Government of Tamil Nadu

1. NEEDS

2. Scheme promoted by the Directorate of Industries and Commerce( DIC ), Government of Tamil Nadu. The objective of the scheme is to provide educated youth with opportunities for entrepreneurship by providing capital and interest subsidy . Educational Qualification : Any Degree, Diploma, ITI / Vocational Training from recognized Institutions . Place of Residence:  The entrepreneur should be a resident of Tamil Nadu for not less than 3 years .

3. Project Cost i ) The minimum Project Cost will be above Rs.5.00 Lakhs and the maximum Project Cost will be Rs.1.00 Crore . For projects costing more than Rs.1.00 crore , subsidy component will be restricted to Rs.25 lakhs . ii) Cost of the land may be included in the Project cost at guideline value or market value, prevailing as on the date of filing of loan application, whichever is lower. iii) Cost of construction of buildings such as Office, Work-shed/Workshop, Laboratory etc., can be included in the project cost subject to the condition that the cost of building shall not exceed 25% of the total project cost iv)The cost of leased/ rental building shall not be included in the Project cost

4. Business Entity:  Entrepreneurs starting their business as a proprietorship or partnership are eligible for the subsidy under the NEEDS Scheme. Also, the business should be a new business . Collateral Security :  Collateral security will be decided as per Bank / Tamil Nadu Industrial Investment Corporation Limited ( TlIC ) guidelines .

5. Age Criteria:  All entrepreneurs within the age of 21 to 35 are eligible under the General Category. Entrepreneurs within the age of 21 to 45 who are also Women / SC / ST / BC / MBC / Minorities / Ex-Servicemen / Transgenders / Differently abled persons are eligible under the Special Category . subsidy :  25% of the project cost not exceeding Rs.25.00 lakhs  is provided.  For projects costing more than Rs. 1.00 Crore , subsidy component is restricted to Rs. 25.00 lakhs .

6. Promoter Contribution: More than 10% of the Project Cost for general category entrepreneurs and 5% of the project cost in case of special category entrepreneurs (BC / MBC / DNC / SC / ST / Women / Minorities / Ex-Servicemen / Transgenders / Differently abled Entrepreneurs ). Financial Institutions i . Tamil Nadu Industrial Investment Corporation Limited (TIIC Ltd.) ii. All Commercial Banks including Regional Rural Banks (RRB), Small Industries Development Bank of India (SIDBI ).

7. Training Institute : The Entrepreneurship Development Programme (EDP) Training will be imparted through Entrepreneurship Development Institute, Guindy , Chennai . Duration of the Training programme : Duration of the EDP Training programme will be for one month ( with stipend) which includes 2weeks theoretical training, 1 week for market survey and 1 week for preparation of Project Report .

8. Other Conditions Projects without capital expenditure or self financed projects are not eligible for the subsidy .  Entrepreneurs who have already availed subsidy linked loans under other State Government / Government of India  schemes Projects without capital expenditure or self financed projects are not eligible for the subsidy. Entrepreneurs who have already availed subsidy linked loans under other State Government / Government of India  schemes Only for New projects

9. Activities eligible for assistance under NEEDS scheme All manufacturing and service activities are eligible under this scheme subject to appraisal for its viability as per the guidelines of TIIC / Bank. Priority will be given to projects which are eco-friendly, accord importance to energy conservation and are export oriented.