New Entrepreneur-cum-enterprise Development Scheme
Category: Business & Entrepreneurship
Level: State | State: Tamil Nadu

Details:
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.
   1. 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.
   1. 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.
   1. Sericulture (Cocoon rearing), Animal Husbandry like Pisciculture, Piggery, Poultry, etc.,
   1. 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 
   1. Sugar
   1. Distilleries, Brewery, and Malt Extraction
   1. Units utilizing Molasses/rectified spirit/de-natured spirit as raw material for the manufacture of potable alcohol.
   1. Fertilizer manufacture and blending (Except bio-fertilizers)
   1. Mining and Quarrying Ores, minerals, etc. [Excluding polishing, cutting, crushing, etc. of mined ores/minerals]
   1. Aluminium, Iron, and Steel Smelting [Excluding foundries]
   1. Manufacturing of intoxicant items like Beedi / Pan / Cigar / Cigarette etc.,
   1. Saw Mills
   1. Cement
   1. Calcium Carbide
   1. Slaughter House
   1. Re-packing of Drugs / Medicine / Chemical, without any processing or value addition
   1. Azoic / Reactive Dyes
   1. Fire Crackers
   1. Industries manufacturing and or utilizing Ozone depleting substances
   1. Industries involving hazardous activities / classified as “Red category” by Tamil Nadu Pollution Control Board / Central Pollution Control Board
   1. Cyanide
   1. Caustic Soda
   1. Potassium Chloride
   1. Nylon, Rayon &amp; Polyester Fibre manufacturing. [Excluding manufacture of downstream products from Nylon, Rayon &amp; Polyester Fibre]
   1. Real Estate
   1. 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 &amp; Management Games, Lecture cum discussion supported by audiovisuals, Interaction with successful entrepreneurs, Intensive Technical Training, and Exposure visits will be adopted. 
##### Subsidy:
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
   1. Technical know-how
   1. Preliminary/ pre-operative expenses
   1. Working capital margin 

##### **Rate of interest:**
Enterprises financed by TIIC/Banks will be charged at the rate of interest applicable to micro &amp; small enterprises as per banking norms.

Benefits:
Under the scheme, subsidy assistance will be provided by the State Government up to 25% of the project cost (Subject to a maximum limit of ₹75 Lakhs).
Interest subvention provided at the rate of 3%, throughout the period of repayment.
Priority in allotment in Small Industries Development Corporation (SIDCO) industrial estates.
An additional capital subsidy is provided for 10% over the capital subsidy of the eligible project cost to the enterprises promoted by SC/ST or differently-abled candidates.

Eligibility Criteria:
1. The applicant should be a resident of Tamil Nadu State for not less than 3 years.
   1. The applicant should be a first-generation entrepreneur.
   1. The age of the applicant should be between 21 to 35 years in general and for special (Women/BC/MBC/SC/ST/Ex-servicemen/Transgender/Differently abled), age relaxation is up to 45 years.
   1. The applicant should possess a minimum 12th std./diploma/ Industrial Training Institutes (ITI) or vocational training from a recognized Institution, aspiring to become entrepreneurs would be eligible for assistance under the scheme.
   1. There will be no income ceiling for assistance in setting up projects under this scheme.
   1. Assistance under the Scheme is available only for new projects sanctioned specifically under the NEEDS.
   1. Entrepreneurs who have already availed assistance under Prime Minister’s Rozgar Yojana (PMRY), Rural Employment Generation Programme (REGP), Prime Minister’s Employment Generation Programme (PMEGP), Unemployed Youth Employment Generation Programme (UYEGP), Tamil Nadu Adi Dravidar Housing and Development Corporation Limited (TAHDCO) or any other scheme of Government of India or State Government will not be eligible for assistance under the NEEDS.
   1. Any applicant/entrepreneur who has availed loan for economic activity under Self Help Group/other group activity will also be not eligible.
   1. The applicant should not be a defaulter to any Commercial Bank / Tamil Nadu Industrial Investment Corporation Limited (TIIC).
   1. Entrepreneurs availing assistance under this scheme will not be eligible to avail of capital subsidy under any other State Government schemes.
   1. Project cost should be above ₹10 lakh, and below ₹5 crore.
   1. The applicant&#39;s contribution should be 10% of the project cost for the General category; and 5% for the Special category.
   1. Entrepreneurship Development Programme (EDP) training is mandatory.

**Note 01:** Subject to satisfying the eligibility criteria by all the partners, partnership concerns may be considered for assistance under the scheme. However, EDP training will be provided to only one of the partners authorized by other partners in such cases.
**Note 02:** The value of the land may be considered as the promoter’s contribution, either in part or in full, as per guideline value or market value, prevailing as on the date of filing of the loan application, whichever is lower, subject to the condition that the title of the land is in the name of the entrepreneur/enterprise proposed to be established.