Status Verification
 

  NEW ENTREPRENEUR-CUM-ENTERPRISE DEVELOPMENT SCHEME (NEEDS)

Online NEEDS application will not be available from 01.00 PM to 02.00 PM on 05/06/2015 (Today)

           In order to assist educated youth to become first generation entrepreneurs, a new scheme under the name “New Entrepreneur–cum-Enterprise Development Scheme (NEEDS)" was introduced based on the guidance of Hon’ble Chief Minister from the year 2012-13 onwards. 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.

For General Category Promoter's Contribution should be 10% of the Project-Cost

For Special Category Promoter's Contribution should be 5% of the Project-Cost

Subsidy from the Government will be 25% of the Project cost subject to a ceiling of Rs.25.00 Lakhs.

Special Category -
 * Women
 * SC/ST/BC/MBC
 * Minorities
 * Ex-Servicemen
 * Transgender
 * Differently abled
            They will be assisted to avail terms loans from Banks/Tamil Nadu Industrial Investment Corporation (TIIC) with capital subsidy at 25% of the project cost not exceeding Rs.25 lakhs and soft loans with 3% interest subvention. Around 1,000 entrepreneurs will be trained each year under this scheme. Under this scheme, at least 50% of the beneficiaries will be women. The Scheme was formally launched by the Hon’ble Chief Minister on 20.02.2013.

Special Features
• The Scheme is applicable for first generation Entrepreneurs only.
• Educated youth with any Degree, Diploma, ITI/Vocational Training from recognised institutions, aspiring to become entrepreneurs would be eligible.
• The applicant should be a resident of Tamil Nadu for not less than 3 years.
• 50% of allocation would be earmarked for Women.
• Capital subsidy at 25% of the project cost not exceeding Rs.25 lakhs.
• Soft loans with 3% interest subvention.

How To Apply
     

The applicants aspiring to apply shall submit the application online by clicking 'Application Filing' menu in the home page.

      Hard copy of the printed application in duplicate duly signed along with a brief project profile with copies of relevant certificates such as proof of age, educational qualification and community shall be submitted at the respective District Industries Centres / Regional Joint Director of Industries and Commerce, Chennai.

     If an applicant unable to download the copy of the application filed in first attempt, please go to home page and click on 'Status/Duplicate' in the top and enter the application number, press submit. You can view the current status and also can download the copy of your application.


  Required Documents
Regarding Applicant :
* Proof of Age (copy of birth certificate or Transfer Certificate from School/College)
* Proof of Residence (Ration Card or Resident Certificate obtained from Tahsildar)
* Copy of Degree/Diploma/Certificate Course completion certificate
* Community Certificate
* Proof for Ex-servicemen - in case of Ex-servicemen
* Proof for differently-abled - in case differently-abled person
* Proof for Transgender - in case of Transgender
* Sworn affidavit obtained from Notary Public in Rs.20/- Stamp paper

Regarding Unit :
* EM Part-I acknowledgement obtained from the office of DIC / RJD, Ch – 32.
* Copy of Land document if included in the Project Cost
* Estimate of Building obtained from Chartered Civil Engineer
* Quotations for machinery or equipments
* Project Report

  • Name : M/s. Sugasana Coirs
    Line of activity : Manufacturing of Coir fibre from coconut husk
    Project Cost : Rs.88.00 Lakhs
    State Subsidy : Rs. 19.65 Lakhs
    Emp- Generation : 19 Persons

  • Name : M/s. Jany Wood Designers
    Line of activity : Wooden Doors and Designers
    Project Cost : Rs10.98 Lakhs
    State Subsidy : Rs.1.81 Lakhs
    Emp- Generation : 10 persons

  • Name : M/s. Creative Printers
    Line of activity : Digital Printing
    Project Cost : Rs. 35.20 Lakhs
    State Subsidy : Rs. 8.70 Lakhs
    Emp- Generation : 10 Persons

  • Name : M/s. Indhumathi, Aruppukottai
    Line of activity : Corrugated Box Manufacturing
    Project Cost : Rs. 40 Lakhs
    State Subsidy : Rs. 4.5 Lakhs
    Emp- Generation : 12 Persons

  • Name : Thiru.Rathnakumar
    Line of activity : Manufacturing of Spectacle Lens
    Project Cost : Rs. 93.50 Lakhs
    State Subsidy : Rs. 18.88 Lakhs

  • Name : M/s. Aura Lush ( Proprx: P.Manjula )
    Line of activity : Obesity/Slimming & Physiotherapy clinic
    Project Cost : Rs. 25.00 Lakhs
    State Subsidy : Rs. 6.18 Lakhs
    Emp- Generation : 5 Persons

  • Name : K.VINU
    Line of activity : PRINTED PP WOVEN SACKS OUT OF WOVEN FABRICS
    Project Cost : Rs. 7.19 LAKHS
    State Subsidy : Rs. 1.80 LAKHS
    Emp- Generation : 10 Persons

www.india.gov.in

www.tn.gov.in

www.msmeonline.tn.gov.in

applications have been filed under NEEDS


First Generation Entrepreneur with the following criterions are eligible to avail assistance under the scheme

Age Minimum : 21 years
  Maximum : 35 years for General category
               :45 years for Special category(SC/ST/BC/MBC/Ex-servicemen/ Minorities/Transgenders/Differently abled persons)
Educational Qualification Degree/ Diploma/ ITI / Vocational training from Recognised institutions
Place of residence The applicant should be a resident of Tamil Nadu for not less than 3 years
Promoters Contribution General Category : 10% of the project cost
  Special category : 5% of the project cost
Reservation SC : 18%
  ST : 1%
  Differently abled : 3%
  50% of the beneficiaries will be women with priority accorded to destitute women.
Income ceiling No income ceiling is prescribed for assistance under this scheme.
Partnership One or more persons can jointly establish Partnership enterprises provided all the partners should satisfy the eligibility criteria. However, EDP training will be provided to only one of the partners authorized by other partners in such cases.
Eligible Activities All economically viable manufacturing and service activities (except those activities mentioned in negative list)
Ineligible Applicants Assistance under the Scheme is available only for NEW Projects. Entrepreneurs who have already availed subsidy linked loans under other State Government / Government of India schemes such as Prime Minister Rojgar Yojana (PMRY), Rural Employment Generation Programme (REGP),Prime Minister’s Employment Generation rogramme(PMEGP), Unemployed Youth Employment Generation Programme(UYEGP) ,TamilNadu Adi Dravidar Housing and Development Corporation Limited (TAHDCO) and Self help group will not be eligible for assistance under NEEDS. The applicant should not be a defaulter to any Commercial Bank/ Tamil Nadu Industrial Investment Corporation Limited (TIIC).
1. Objectives

      (i) 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.
      (ii) 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 loan, to set up manufacturing or service enterprises with a project cost not exceeding Rs.1.00 crore and capital subsidy of 25% of project cost not exceeding Rs.25.00 lakhs with 3% interest subvention to be provided by the State Government. (iii) Subject to availability, they would also be provided with reservation upto 25% for allotment of Plots / Sheds in SIDCO Industrial Estates in the State.

2. Target group

      Educated youth with any Degree, Diploma, ITI / Vocational Training from recognized Institutions, aspiring to become entrepreneurs would be eligible for assistance under the scheme.

3. State Level Nodal / Implementing Agencies:

      The Organisations listed below will act as the Nodal / Implementing Agencies for the successful implementation of the various components of the Scheme. The Industries Commissioner and Director of Industries and Commerce would be overall in-charge of implementation of the scheme under the supervision of the Principal Secretary, Micro.-'Small and Medium Enterprises Department:

Component of the Scheme State Level Nodal Agency State Level District Level
1. Selection of beneficiaries Commissionerate of Industries and Commerce, Chennai Commissionerate of Industries and Commerce, Chennai General Managers of District Industries Centres/Regional Joint Director of Industries and Commerce, Chennai
2.Entrepreneurship Development ProgrammeTraining Entrepreneurship Development Institute (EDI), Chennai. Entrepreneurship Development Institute (EDI), Chennai. Entrepreneurship Development Institute (EDI), Chennai.
3. Arranging for Term Loan from Banks /Tamil Nadu Industrial Investment Corporation Limited (TI'IC) Commissionerate of Industries and Commerce, Chennai. Commissionerate of Industries and Commerce, Chennai / Tamil Nadu Industrial Investment Corporation Limited (TIIC) General Managers of District Industries Centres/Regional Joint Director of Industries and Commerce, Chennai/ Branch Manager, TamilNadu Industrial Investment Corporation Limited (TIIC)
4.Allotment of Plots/Sheds in SIDCO Industrial Estates Tamil Nadu Small Industries Development Corporation Limited, Chennai Tamil Nadu Small Industries Development Corporation Limited, Chennai Branch Managers of TamilNadu Small Industries Development Corporation Limited in the Districts
4.Training Institute

       The Entrepreneurship Development Programme (EDP) Training will be impartedthrough Entrepreneurship Development Institute, Guindy, Chennai.

5. Methodology of the Training

       The trainees will be exposed to Behavioural Components, Business OpportunityGuidance and Preparing bankable Business Plan, 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 audio-visuals, Interaction with successful entrepreneurs, Intensive Technical Training and Exposure visits will be adopted.

6. Duration of the Training programme and Batch Size

       Duration of the EDP Training programme will be for one month which includes 2weeks theoretical training, 1 week for market survey and 1 week for preparation of Project Report. The Training will be more interactive in nature and therefore, the batch size will be confined to 25. A total of 1,000 entrepreneurs are proposed to be trained per year during the next 5 years from the year 2012-13 onwards, at an average of 40 Batches comprising of 25 trainees.

7. Course content

       The Entrepreneurship Development Programme has the following six components:
• Behavioural Components
• Business Opportunity Guidance
• Business Plan Preparation
• Management Issues
• Laws regulating the Small Business
• Environment Scanning - An overview of the Entrepreneurship support institutions.

8. Activities covered

        All economically viable manufacturing and service activities are eligible under this scheme subject to appraisal for its 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.

9. Selection of the beneficiaries

        Selection of beneficiaries for training will be done at the District level by a Task Force consisting of the District Collector as its Chairman, General Managers, District Industries Centres / Regional Joint Director of Industries and Commerce, Chennai asMember - Convenor, Lead Bank Manager, Branch Manager of Banks / Tamil Nadu Industrial Investment Corporation Limited (TIIC), Branch Manager, Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO), District Manager, Tamil Nadu Adi Dravidar Housing and Development Corporation Limited (TAHDCO), District Employment Officer, Representatives of Entrepreneurship Development Institute (EDI), Micro, Small and Medium Enterprises - Development Institute (MSME-DI) and local Micro, Small and Medium Enterprises (MSME) Association as its members. Applicants would be screened by the District Level Task Force Committee.

NORMS OF ASSISTANCE

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. The valuation of the building eligible for subsidy will be assessed by General Managers, District Industries Centres / Regional Joint Director of Industries and Commerce, Chennai in respect of bank financed units and Branch Manager of TIIC in respect of TIIC financed units as per the prevailing PWD Schedule of rates as on date of commencement of construction of the building or the cost of the building actually constructed as certified by the Chartered Engineer, whichever is lower. In respect of service enterprises, investment in capital expenditure should not be less than 25% of the total project cost.
iv) The cost of leased/ rental building shall not be included in the Project cost.
v) In respect of plant and machinery, only new machinery will be considered eligible and indigenous / imported second-hand machinery will not be considered for assistance. However, second-hand machinery, directly imported by the entrepreneur would be considered eligible for assistance.
vi) Project cost will include capital expenditure and margin money for working capital.
vii) Capital Expenditure will generally include investment on Land, Building and Plant & Machinery only. Hence projects without capital expenditure are not eligible for financing under the Scheme.
viii) Self financed projects will not be eligible under this scheme.
ix) Tamil Nadu Industrial Investment Corporation Limited (TIIC) / Banks are permitted to arrive at the components of project cost based on their appraisal guidelines.
Promoter's Contribution
a. 10% of the Project Cost for general category entrepreneurs.
b. 5% of the Project Cost in case of special category entrepreneurs (BC / MBC / DNC / SC / ST / Women / Minorities / Ex-Servicemen / Transgenders / Differently abled Entrepreneurs)
c. Value of the land may be considered as promoter's contribution, either in part or in full, as per guideline value or market value, prevailing as on the date of filing of 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.
Subsidy
25% of the Project Cost subject to a ceiling of Rs.25.00 lakhs as subsidy from Government. However, the following expenses will not be considered for calculation of subsidy under this scheme:

i. Cost of rented/leased building ii. Technical know-how iii. preliminary/ pre-operative expenses iv. working capital margin
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).
Term Loan
i) TIIC/Banks will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of cash icredit. Projects can also be financed by TIIC/ Banks in the form of Composite Loan consisting of Capital Expenditure and Working Capital.
ii) The amount of TIIC/Bank Credit will range between 65-70% of the total project cost after deducting 25% of subsidy and owner's contribution of 10% from beneficiaries belonging to general category and 5% from beneficiaries belonging to special categories.
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.
INTEREST SUBVENTION
A back-ended interest subsidy at the rate of 3% will be provided to enterprises financed by Banks/TIIC on a quarterly basis during the entire repayment period. The applicant should submit their subsidy claims application in the Banks / TIIC. The Banks / TIIC should send their claim to the concerned General Managers, District Industries Centres / Regional Joint Director of Industries and Commerce, Chennai on completion of every quarter.
Eligibility for availing interest subvention
a) The entrepreneur should be prompt in repayment of loan and interest.
b) If there is any default in repayment of loan and interest as per schedule
of repayment fixed by Bank, interest subvention will not be paid during the period of default. However, if the entrepreneur subsequently pays the instalment, interest subvention alone shall be paid. Penal interest or charges for belated payment, if any, shall not be paid by the Government.
c) The Enterprise should be in operation during the period for which interest subvention is claimed.
d) If the loan account is classified as Non Performing Assets (NPA), interest subsidy will be withdrawn.
Collateral Security:
Collateral security will be decided as per Bank / Tamil Nadu Industrial Investment Corporation Limited (TlIC) guidelines. Subject to applicability, loans may also be covered under Credit Guarantee Fund Trust Scheme for Micro and Small Enterprises (CGT-MSE) of Government of India.

Contact Details

HEAD OFFICE
Department Of Industries & Commerce, SIDCO Corporate Office Building, Guindy Industrial Estate, Chennai 600 032.
Email-indcom(at)tn(dot)gov(dot)in. Website-www.msmeonline.tn.gov.in
Fax No-22505003,22505023
Sl. No Name Phone/E-mail
1 .,
-
2 Mr.Thiru S.A.P. Vairamani,B.E.,,
Additional Director (RP)
044- 22505011, 22501073(Extn : 123)
3 Mr.Thiru P. Jagadeesh, B.E.,,
Joint Director (Engineering)
044- 22505084,22505011(Extn : 139)
4 .Thiru N. Lakshminarayanan,
Deputy Director (S&S) / (NC) (i/c)
044- 22505011, 22501073(Extn : 141)
5 .Thiru T.S.Chandramohan,,
Assistant Director (NC)
044- 22505011, 22501073(Extn : 156)
6 .Thiru V.Sethupathy,,
Assistant Director (S&S)
044- 22505011, 22501073(Extn : 156)
7 .Thiru A.S.Purushothaman,,
Sys. Analyst/Assistant Director(eGov)
044- 22505011, 22501073(Extn : 125)

List of District Industries Centres

Mr.S.Fazal Ali,
General Manager,
Ariyalur District.
531/21, Jeyankondam Road, Vallajanagaram,Ariyalur 621 704
04329- 228555 228556
dicariyalur@tn.gov.in
Mr.S.Ramachandran,
Regional Joint Director,
Chennai District.
Dept. Of Industries And Commerce, Guindy Industrial Estate, Chennai.32
044- 22318620, 22318622, 22336865
rjdchn@tn.gov.in
www.rjdchn.in
Mr.S.Asokan,
General Manager,
Coimbatore District.
General Manager, District Industries Centre, 2, Raja Street, Coimbatore - 614 001.
0422- 2391678, 2397311
diccbe@tn.gov.in
www.diccbe.in
Mr.Rajaganesh,
General Manager,
Cuddalore District.
District Industries Centre, Semandalam I.E., Semandalam, Cuddalore-1.
04142- 290116, 290192
diccud@tn.gov.in
www.diccud.in
Mr.G.Murugan,
General Manager - Incharge,
Dharmapuri District.
District Industries Centre, Sidco IE, Salem Main Road, Dharmapuri-636705.
04342- 230892, 231081
dicdpi@tn.gov.in
www.dicdpi.in
Mr.M.Ramalingam,
General Manager,
Dindigul District.
District Industries Centre,SR Mills Rd., Sidco Indl.Estate, Dindigul-624003
0451- 2470893, 2471609
dicdgl@tn.gov.in
www.dicdgl.in
Mr.S.M.Rasumani,
General Manager,
Erode District.
District Industries Centre, Sidco I.E. Campus, Erode-638001
0424- 2275440, 2275859
dicerd@tn.gov.in
www.dicerd.in
Mr.S.Sakthivel,
General Manager,
Kancheepuram District.
District Industries Centre, Collectorate Compound, Kancheepuram-631 501.
044- 27238837, 27238551
dickpm@tn.gov.in
www.dickpm.in
Mr.K.Marimuthu,
General Manager,
Kanniyakumari District.
District Industries Centre, Konam, Nagercoil, Kanyakumari District- 629 004.
04652- 260008
dicngl@tn.gov.in
www.dicngl.com
Mr.P. Rangasami,
General Manager,
Karur District.
District Industries Centre, No.69 Sathiyamoorthy Nagar,Thanthonimalai Post, Karur 639 007.
04324- 255179
dickrr@tn.gov.in
www.dickrr.in
Mr.G.Murugan,
General Manager,
Krishnagiri District.
District Industries Centre, Industrial Estate, Krishnagiri.
04343- 235567
dickgri@tn.gov.in
www.dickgri.in
Mr.S.Santhakumar,
General Manager,
Madurai District.
District Industries Centre, Alagar Koil Road, Madurai - 625 002.
0452- 2537621
dicmdu@tn.gov.in
www.dicmdu.in
Mr.I.Arulselvan,
General Manager,
Nagapattinam District.
District Industries Centre, District Collectorate Master Complex, Nagore Village Ward No.4, Block No. 07, Survey No.214/215/216, Nagapattinam
04365- 251170
dicnpm@tn.gov.in
www.dicnpm.in
Mr.K.Raju,
General Manager,
Namakkal District.
District Industries Centre, Collectrote Complux, Namakkal-637 003.
04286- 281251
dicnmkl@tn.gov.in
www.dicnmkl.in
Mr.A.Deiveekan,
General Manager,
Nilgiris District.
District Industries Centre, Elk Hill Road, The Nilgiris-643 006
0423- 2443947
dicooty@tn.gov.in
www.dicooty.in
Mr.S.Fazal Ali,
General Manager - Incharge,
Perambalur District.
District Industries Centre, District Master Complux, Collectorate Road, Perambalur.
04328- 294595
dicpblr@tn.gov.in
www.dicpblr.com
Mr.K.Mahalingam,
General Manager,
Pudukkottai District.
District Industries Centre, Collectorate Compound, Pudukottai-622 005.
04322- 221794
dicpdk@tn.gov.in
www.dicpdk.in
Mrs.P.Mariammal,
General Manager,
Ramanathapuram District.
District Industries Centre, Pattinamkatthan Post, Velli Pattinam Via, Ramanathapuram-625 005.
04567- 230497, 232329
dicrmd@tn.gov.in
www.dicrmd.in
Mr.K. Govindarajan,
General Manager,
Salem District.
District Industries Centre, Indl.Estate, Salem- 636 004.
0427- 2447878
dicslm@tn.gov.in
www.dicsalem.in
Mr.S.M.Ghias,
General Manager,
Sivaganga District.
District Industries Centre, Collectorate Complex, Sivagangai-623 560
04575- 240257, 240407
dicsva@tn.gov.in
www.dicsvg.in
Mr.G. Raveendran,
General Manager,
Thanjavur District.
District Industries Centre, Nanjakottai Road, Thanjavur-613 006.
04362- 255318, 230857
dictnj@gmail.com
www.ductnj.in
Mr.L.Ramasubramanian,
General Manager,
Theni District.
District Industries Centre, Collector's Bungalow, Theni-625 531
04546- 252081
dicthn@tn.gov.in
www.dictni.in
Mr.S.Kandasamy,
General Manager,
Thiruchirappalli District.
District Industries Centre, Collectorate Compound, Trichirappalli-620 001
0431- 2460823
dictrichy@tn.gov.in
www.dictiruchi.in
Mr.C.Devaraj,
General Manager,
Thiruppur District.
District Industries Centre, Avinasi Road, Anupparpalayam Post, Tirupur 641 652.
0421- 2475007
dictpr@tn.gov.in
www.dictiruppur.in
Mr.K.Ravi,
General Manager,
Thiruvallur District.
District Industries Centre, Kakkalur Industrial Estate, Kakkalur, Thiruvallur - 602 003.
044- 27666787, 27663796
dictvlr@tn.gov.in
www.dictvlr.in
Mr.G.Chidambaram,
General Manager,
Thiruvannamalai District.
District Industries Centre, Collectorate Campus, Near Commercial Tax Office, Thiruvannamalai 606 604.
04175- 254849
dictvm@tn.gov.in
www.dictvm.in
Mr.M.Shanmuga Rajan,
General Manager,
Thiruvarur District.
District Industries Centre, Survey No. 426, Master Plan Complex,(Near Collector Camp Office), Vilamal, Thiruvarur 610 004.
04366- 224403
dictvrur@tn.gov.in
www.dictiruvarur.com
Mr.T.Mayathevar,
General Manager,
Thoothukudi District.
District Industries Centre, Palayamkottai Road, Near By Pass Road, Korampallam, Thoothukudi 628 101.
0461- 2340152, 2340053
dictuti@tn.gov.in
www.dictui.in
Mr.G.Gnanasekar,
General Manager,
Tirunelveli District.
District Industries Centre, Thomas Road, Tirunelveli-627 001.
0462- 2572162, 2572384
dicnellai@tn.gov.in
www.dictirunelveli.in
Mr.T.Ramesh,
General Manager,
Vellore District.
District Industries Centre, Gandhi Nagar I.E., Vellore-632 006
0416- 2242512, 2242413
dicvlr@tn.gov.in
www.dicvlr.in
Mr.A.Rajarajan,
General Manager,
Villupuram District.
District Industries Centre, Bhavani Street, Alamelupuram, Villupuram-605 602
04146- 226602
dicvpm@tn.gov.in
www.dicvpm.in
Mr.S.Maruthappan,
General Manager,
Virudhunagar District.
District Industries Centre, Collectorate Complex, Virudhunagar.
04562- 252308
dicvrd@tn.gov.in
www.dicvnr.in

FREQUENTLY ASKED QUESTIONS

1. Who are the beneficiaries?
Individual Entrepreneur (Proprietorship) or Group of entrepreneurs (Partnership), provided all are should be a First Generation Entrepreneur(s).
2. Whether partnership projects are considered under this scheme?
Yes, subject to eligibility criterions of all the partners as prescribed in the NEEDS G.O., partnership concerns may be considered for assistance under this scheme.
3. What is the age limit to apply under NEEDS?
Minimum of 21 years, maximum of 35 years for General Category & maximum of 45 years for Special Category viz...Women, Transgender, BC, MBC, SC/ST, Minority, Ex-servicemen and Physically Challenged.
4. Anyone residing outside Tamil Nadu State can start business in Tamilnadu under NEEDS?
No, the applicant should be a resident of Tamilnadu State for not less than 3 years.
5. Anyone residing in Tamil Nadu can start business anywhere in Tamilnadu under NEEDS
Yes, In such a case, for example, a resident of Kanyakumari District can start an enterprise in Chennai District and vice versa.
6. Is there any income ceiling to get assistance under NEEDS?
No. There is no family income ceiling prescribed for assistance for setting up projects under this scheme.
7. What is Project Cost?
Project cost will include Capital Expenditure and Margin Money for working capital.
8. What is Capital Expenditure?
Capital Expenditure will generally include investment on Land, Building and Plant & Machinery only.
9. Whether cost of land includes in the project cost?
Yes. Cost of the land is included in the Project cost at guideline value or market value, prevailing as on the date of filing of loan application, whichever is lower.
10. Whether cost of building includes in the project cost?
Yes, Cost of construction of buildings such as Office, Work-Shed / Workshop, Laboratory etc., are included in the project cost subject to the condition that the cost of building shall not exceed 25% of the total project cost.
11. Whether cost of leased/rental building includes in the project cost?
No, the cost of leased/ rental building shall not be included in the Project cost.
12. How much maximum subsidy is available under this scheme?
25% of the project cost subjected to maximum amount of Rs.25.00 lakhs.
13. What are the components which are taken into consideration while calculating the subsidy?
25 % of the project cost includes the land, building and Plant and Machinery value maximum to the cap of Rs.25.00 lakhs. Subjected to the condition that Building cost should not exceed 25% of project Cost & Equipments value should exceed 25% of the project Cost for service entity.
14. In partnership projects, is it mandatory for all the partners to attend the EDP training?
No, not necessary for all partners to attend the training programme. EDP training will be provided to only one of the partner who should be authorized by other partners in such cases.
15. In partnership projects, what is the owner contribution if one of the partner(s) belongs to General category?
Owner contribution depends on majority of partners involved in the project. For instance, in a unit of two partners involved, one belongs to General category and other one from Special Category, and then the contribution will be as applicable for General category. For instance, if a unit has three partners one belongs to General category and other two from Special Category, then the contribution will be as applicable for Special category.
16. Is it front ended or back ended Individual based subsidy under NEEDS?
It is front ended subsidy. For project costs upto Rs.50.00 lakhs, 50% of eligible subsidy on actual sanction of loan and 50% balance eligible subsidy later after verifying the capital expenditure actually incurred by the beneficiary. For project costs above Rs.50.00 lakhs, 50% on actual sanction of loan and 25% each later after verifying the capital expenditure actually incurred by the beneficiary.
17. What are the eligibility criterias for an individual to apply under NEEDS?
Please refer ‘Instructions to applicants’.
18. Before completion of EDP training can an individual claim subsidy?
Not possible. He / She should complete EDP training, deposit his/her own proportionate contribution of the project cost in his account. Bank has to release the Term Loan subsequent claim(s) has to be send to GM,DIC/RJD,Chennai along with the disbursement advices.
19. 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 applicability, loans may also be covered under Credit Guarantee Fund Trust Scheme for Micro and Small Enterprises (CGT-MSE) of Government of India.
20. 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.
21. To know more about the scheme especially on the guidelines, where to refer?
Please refer to G.O.Ms.No.49, MSME (D2) Department, dated : 29.10.2012 in the website www.indcom.tn.gov.in (or) FAQ menu in the home page of this website.
22. Whether 1 month EDP Training is compulsory?
Yes, mandatory.
23. If an entrepreneur completed one month equivalent EDP training sponsored by EDI, Chennai before applying under NEEDS, then he/she can avail exemption from regular 1 month mandatory EDP training?
Yes, he/she can avail exemption from regular 1 month mandatory EDP training.
24. 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).
25. Can project be financed jointly from two different finance sources?
No, it is not possible.
26. Whether existing unit can avail funds under NEEDS?
No, only new unit is eligible, as the entrepreneur is First Generation Entrepreneur.
27. Whether an entrepreneur can submit more than one project?
No, only one project could be submitted.
28. 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.


 
 
Department of Industries & Commerce
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