New Entrepreneur cum Enterprise Development Scheme (NEEDS). Youth get together to build a bridge to the moon. Even a palace on earth with their materials. Then in the Middle Ages, they decide to make a woodshed with them instead.
However, a NEEDS Scheme is an excellent initiative by the Tamil Nadu Government, Department of Industry, and Commerce. Also, the scheme’s goal is to provide opportunities for entrepreneurship to professional young people. And by providing capital and interest subsidies. So, in this article, look at the features of Tamil Nadu’s NEEDS Scheme.
Introduction to NEEDS Scheme 2024-2025
Table of Contents
The full form of the NEEDS scheme is the “New Entrepreneur cum Enterprise Development Scheme’.Also, the NEEDS scheme introduces the objective of Helping Qualifying youth grow into first-generation entrepreneurs. However, youth is the future of the country. To clarify, they are the ones who can take all the culture forward.
Following the GO. Ms, No 49 MSME Dept dated October 29, 2012. Also, the Entrepreneurship Growth Programme gives training to all professional youth.
In addition above, it assists in planning their business plans and helps develop new Manufacturing and Service Projects with financial institutions. Also, changes infer to existing standards that vide GO (Ms)Department No.13 MSME(D2), dated 24.4.2018. But A Generation Entrepreneur must be the beneficiary.
Training Institute
Entrepreneurship Development Institute (EDI), Guindy, Chennai, provides training to recognize beneficiaries in the NEEDS scheme.
Eligibility for New Entrepreneur cum Enterprise Development Scheme (NEEDS)
In the New Entrepreneur cum Enterprise Development Scheme (NEEDS), the youth applying under this scheme must follow the eligibility criteria :
- All the newly built Micro and Small Enterprises in the manufacturing and service sectors.
- Professional youth with any qualification, Diploma, or ITI/vocational training from a known institution.
- Women, SC, ST, BC, MBC, Minorities, ex-servicemen, Transgender, and disabled persons are eligible to apply.
- The age group of between 21-35 years below the General category and 21-45 years below the particular category.
- For not less than three years, the applicant must be a citizen of the Tamil Nadu District.
- Partnership firms: Submissive to meeting the eligibility criteria by all the partners, partnership matters are considered for support under the scheme. Therefore, EDP training provides only one of the partners authorised by other partners in such cases.
- However, an entrepreneur who already registers under any other scheme of Govt. of India is not eligible.
Purpose of Introducing the NEEDS Scheme
- The minimum cost of the project is 10.00 rs lakh.
- The maximum cost of the project is Rs.500.00 Crore.
- The Subsidy portion is restricted to Rs.30.00 lakh for projects costing more than Rs.1.20 Crore.
- Land costs include the project’s expense at the cost of the Guideline or the market value. However, whichever is less.
- Building costs such as office, warehouse, laboratory, etc. This may include project costs subject to the requirement that building costs do not exceed 25 per cent of project costs. Investment in capital expenditure for service enterprises must not exceed less than 25 per cent.
- In-Plant & machinery, only new machinery and secondhand machinery directly imported by the entrepreneur are eligible.
- The cost of lease/rental buildings is not included in the project cost.
Objectives of New Entrepreneur cum Enterprise Development Scheme (NEEDS)
Firstly, Professional youth provides entrepreneurship training to refine them as first-generation entrepreneurs. On the essentials of conceiving, planning, starting, and originating a manufacturing or service enterprise successfully.
Secondly, At the end of the training program, the applicants assist in preparing their business plans. Also, helps to tie up with financial organizations to get a term loan. Therefore, they can set up manufacturing or service companies with a project cost not passing Rs.1.00 Crore.
However, even the capital subsidy of 25% of the project cost not exceeding Rs.25.00 lakhs. Along with a 3% interest subsidy provided by the State Government.
Thirdly, On the other hand, subject to availability, they also get the reservation up to 25%. For the share of Plots or Sheds in SIDCO Industrial Estates in the State.
Activities under the NEEDS Scheme
However, all economically viable manufacturing and service projects are available under this scheme. Further, subject to evaluation for its viability as per the guidelines of TTIC or the bank.
However, the TTIC is Tamil Nadu Industrial Investment Corporation Ltd. give preference for eco-friendly projects. Also, understand the importance of energy conservation, and take an interest in exporting.
Promoter’s Contribution
- 10% for general category entrepreneurs.
- 5% for special category entrepreneurs are SC or ST, Women, Minorities, Ex-Servicemen, etc.
The value of the land considers the lender’s contribution, either in whole or in part. In addition to the guideline value or market value.
However, prevailing as at the date of filing a loan application, whichever is lower, is subject to the State. Also, the title of the land is in the name of the proposed entrepreneur/enterprise.
Eligible Subsidy Under New Entrepreneur cum Enterprise Development Scheme (NEEDS)
Firstly, 25% of the Project Cost is subject to a cover of Rs.30.00 lakh. That is to say, for projects costing more than Rs.1.20 Crore, the payment is restricted to Rs.30.00 lakh.
Also, a 3% Interest Subvention during the whole repayment period.
Therefore, the following expenses are not applicable for the calculation of subsidy under this scheme:
i. Cost of rent or Building on lease.
ii. Technical know-how.
iii. Preparatory/ pre-operative expenses.
iv. Working capital perimeter.
Repayment Period
The repayment period is up to 9 Years, including a holiday period of 2 years for the scheme.
Collateral Security
However, NEEDS scheme, 50% of the proposed loan amount is collateral security. Also, collateral security is determined in compliance with the guidelines of Bank / Tamil Nadu Industrial Investment Corporation Limited (TlIC). Also, the loans protect the applicability under the Government of India’s Credit Guarantee Fund Trust Scheme for MSMEs.
List of Documents
- Proof of Age is essential in the form of a Copy of a Birth Certificate or Transfer Certificate.
- Proof of Residence and Copy of Ration Card/Smart Card or Residence Certificate from Tahsildar.
- Copy of Degree or Diploma Certificate.
- Community Certificate.
- Certificate in Proof for Ex-Servicemen /Differently Abled /Transgenders, anywhere applicable.
- Project Report with Projected sales & cash flow statement for the following three years.
- Copy of Land Document, but if the requirement in the project.
- An evaluation of the Building is obtained from the Chartered Civil Engineer.
- Quotations for the Machinery or Equipment.
- Sworn Affidavit obtained from Notary Public in Rs.20/- Stamp Paper as per format.
- Copy of Partnership Deed, if you have one of the partnership firms.
In conclusion, the NEEDS Scheme usually targets professional youngsters who qualify. With any Degree, Diploma, ITI, or Vocational Training from affiliates and well-known Institutions. Further, if you want to become an entrepreneur, apply today under the NEEDS scheme.
Helpline number
However, through this article, we share all the essential information that connects to the New Entrepreneur cum Enterprise Development Scheme (NEEDS) 2020-21. If you are still facing any problems, you can solve your problem by visiting official website of the Tamilnadu Industrial Investment Corporation Ltd. You can also, contact the helpline number or email. So, the helpline number and email id are as follows.
- Helpline Number- +91-044-24306100 / +91-044-24331203
- Email Id- [email protected]
