What you get
- 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.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
Who 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 years
Anyone 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 [?]75 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 owner'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.