Question: What is the application process for New Entrepreneur-cum-enterprise Development Scheme?

Answer: Here's how to apply for New Entrepreneur-cum-enterprise Development Scheme:

:Step 01: The received applications will be scrutinized and shall be placed before the Task Force Committee. Step 02:
The Selection will be based on qualification, skill, aptitude, viability of the proposed project, marketability, interview/screening of the
applicant, etc.Step 03: The selected applications will be sent to the bank / Tamil Nadu Industrial Investment Corporation Limited (TIIC)
branches by the General Managers, District Industries Centres in proportion to the target fixed by the Industries Commissioner and
Director of Industries and Commerce.Step 04: The bank / Tamil Nadu Industrial Investment Corporation Limited (TIIC) branches shall
assess the potentiality and will issue provisional sanctions to eligible beneficiaries. The provisional sanctions shall be intimated to the
concerned District Industries Centres. Step 05: The District Industries Centres shall arrange for compulsory Entrepreneurship
Development Programme training by the Entrepreneurship Development Institute. On completion of training, Entrepreneurship
Development Institute will issue training certificates. Step 06: After successful completion of Entrepreneurship Development Programme
training (EDP), those beneficiaries whoever apply, shall be allotted Developed Plot / Work Sheds at Small Industries Development
Corporation Limited (SIDCO) managed Industrial Estates, at the cost fixed by Small Industries Development Corporation Limited
(SIDCO), subject to the availability of the same on priority basis by Small Industries Development Corporation Limited (SIDCO).Step
07: Subsequently, the beneficiary will deposit the Promoterâ€™s Contribution with the bank / Tamil Nadu Industrial Investment
Corporation Limited (TIIC). Thereafter, the bank / Tamil Nadu Industrial Investment Corporation Limited (TIIC) will disburse the 1st
installment of the bank finance to the beneficiary.ï»¿Procedure for Online Filling of Application Dos and Donâ€™tsï»¿Documents
RequiredIdentity proof i.e. copy of Election ID Card/ Aadhaar cardCopy of PAN CardPassport size photoEducational Qualification
proofProof of ageCaste/Community CertificateResidence proofValid certificate for the proof of Ex-Serviceman /Differently abled
/TransgenderBank account detailsAny other document, if requiredFrequently Asked QuestionsWho are the beneficiaries?First
Generation Individual Entrepreneur (Proprietorship) or Group of Entrepreneurs (Partnership), provided that all members of the
partnership should be First Generation Entrepreneurs.Whether partnership projects are considered under this scheme?Yes, subject to the
condition that the eligibility criterion as prescribed in the NEEDS G.O. is fulfilled by each and every individual of those entered into the
partnership deed, partnership concerns may be considered for assistance under this scheme. What is the age limit to apply under
NEEDS?The applicant must be of age between 21 -35 in general and for special (Women/BC/ MBC/ SC/ST/Ex-
servicemen/Transgenders/Differently abled), age relaxation upto 45 yearsAnyone residing outside Tamil Nadu State can start business in
Tamil Nadu under NEEDS?No, the applicant should be a resident of Tamil Nadu State for not less than 3 years.Can anyone residing in
Tamil Nadu start business anywhere in Tamil Nadu under NEEDS?Yes, in such a case, for example, a resident of Kanyakumari District
can start an enterprise in Chennai District and vice versa.Is there any income ceiling to get assistance under NEEDS?No, there is no
family income ceiling prescribed for assistance in setting up projects under this scheme.What is Project Cost?Project cost is the sum of
Capital Expenditure and Margin Money for working capital.What is Capital Expenditure?Capital Expenditure will generally include
investment in Land, Buildings, Plants, and Machinery only.Whether cost of land can be included in the project cost?Yes, the 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 the loan application,
whichever is lower.Whether cost of building can be included in the project cost?Yes, the Cost of construction of buildings such as
Offices, Work-Shed / Workshop, Laboratories, etc., may be included in the project cost subject to the condition that the cost of the
building shall not exceed 25% of the total project cost. Whether cost of leased/rental building can be included in the project cost?No, the
cost of leased/ rental building shall not be included in the Project cost.How much maximum subsidy is available under this scheme?25%
of the eligible components of the project cost subject to the maximum amount of â‚¹75 Lakhs.In partnership projects, is it mandatory for
all the partners to attend the EDP training?No, EDP training will be provided to only one of the partners who should be authorized by
other partners in such cases.In partnership projects, what is the owner contribution if one of the partner(s) belongs to General category?
The ownerâ€™s contribution depends on the majority of partners involved in the project. For instance, in a unit of two partners involved,
one belongs to the General category and the other one from Special Category, and then the contribution will be applicable to the General
category. For instance, if a unit has three partners one belongs to the General category and the other two from Special Category, then the
contribution will be as applicable for the Special category.Before completion of EDP training can an individual claim subsidy?Not
possible. He / She should complete EDP training, and deposit his/her own proportionate contribution of the project cost in his account.
Bank has to release the Term Loan subsequent claim(s) have to be sent to GM, DIC/RJD, Chennai along with the disbursement advice.
Under which circumstance collateral security is needed?Collateral security will be decided as per Bank / Tamil Nadu Industrial
Investment Corporation Limited (TlIC) guidelines. Subject to the applicability, loans may also be covered under the Credit Guarantee
Fund Trust Scheme for Micro and Small Enterprises (CGT-MSE) of the Government of India.What is the rate of interest for the
Enterprises financed by TIIC/Banks?Enterprises financed by TIIC/Banks will be charged at the rate of interest applicable to Micro &
Small enterprises as per banking norms. Whether 1 month EDP Training is compulsory?Yes, it is mandatory.If an entrepreneur
completed equivalent EDP training sponsored by EDI, MSME-DI, Banks before applying under NEEDS, then he/she can avail
exemption from regular 1 month mandatory EDP training?Yes, he/she can avail of the exemption from regular 1 month mandatory EDP
training.Which are the financial agencies?All Commercial banks including Regional Rural Banks (RRB), Small Industries Development
Bank of India (SIDBI), Tamil Nadu Industrial Investment Corporation Limited (TIIC Ltd) and Tamil Nadu Industrial Co-operative Bank
(TAICO)Can project be financed jointly from two different finance sources?No, it is not possible.Whether existing unit can avail subsidy
under NEEDS?No, only a new unit being promoted by a new First Generation Entrepreneur is eligible for assistance.Whether an
entrepreneur can submit more than one project?No, only one project could be submitted.Whether second hand machinery would be
considered eligible for assistance?No, only new machinery will be considered eligible. However, second-hand machinery, directly
imported by the entrepreneur would also be considered eligible for assistance.Sources And ReferencesGuidelineOfficial WebsiteOkWas
this helpful?News and UpdatesNo new news and updates availableShareYou need to
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your application earlier.To know more please visit CancelApply NowTamil NaduNew Entrepreneur-cum-enterprise
Development SchemeEntrepreneurLoanMSMENEEDSSubsidyDetailsBenefitsEligibilityApplication ProcessDocuments
RequiredFrequently Asked QuestionsThe scheme â€œNew Entrepreneur-Cum-Enterprise Development Scheme (NEEDS)â€​ 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 â‚¹75 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: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.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 â‚¹5 Crore and capital subsidy of 25%
of the project cost not exceeding â‚¹75 lakhs with 3% interest subvention to be provided by the State Government.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:Any activity directly connected with agriculture.Sericulture (Cocoon
rearing), Animal Husbandry like Pisciculture, Piggery, Poultry, etc.,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 SugarDistilleries, Brewery, and Malt ExtractionUnits utilizing Molasses/rectified spirit/de-natured spirit as raw material for the
manufacture of potable alcohol.Fertilizer manufacture and blending (Except bio-fertilizers)Mining and Quarrying Ores, minerals, etc.
[Excluding polishing, cutting, crushing, etc. of mined ores/minerals]Aluminium, Iron, and Steel Smelting [Excluding
foundries]Manufacturing of intoxicant items like Beedi / Pan / Cigar / Cigarette etc.,Saw MillsCementCalcium CarbideSlaughter
HouseRe-packing of Drugs / Medicine / Chemical, without any processing or value additionAzoic / Reactive DyesFire
CrackersIndustries manufacturing and or utilizing Ozone depleting substancesIndustries involving hazardous activities / classified as
â€œRed categoryâ€​ by Tamil Nadu Pollution Control Board / Central Pollution Control BoardCyanideCaustic SodaPotassium
ChlorideNylon, Rayon & Polyester Fibre manufacturing. [Excluding manufacture of downstream products from Nylon, Rayon &
Polyester Fibre]Real EstateAll 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. 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:Cost of
rented/leased buildingTechnical know-howPreliminary/ pre-operative expensesWorking 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. OkWas this
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