The New Entrepreneur cum Enterprise Development Scheme (NEEDS) is a comprehensive scheme offered by the Directorate of Industries and Commerce, Government of Tamil Nadu. It offers financial subsidies, training, and more to help new entrepreneurs succeed. In this article, you’ll find everything you need to know about NEEDS, including the objective, eligibility criteria, benefits, required documents, and how to apply. Whether you’re just starting out or ready to take your business to the next level, check out this article and learn how NEEDS can help you achieve your goals.
Introduction to the New Entrepreneur cum Enterprise Development Scheme (NEEDS)
The Government of Tamil Nadu is committed to helping youth start businesses. To do this, the state government has launched the New Entrepreneur cum Enterprise Development Scheme (NEEDS). This scheme supports young and educated entrepreneurs who want to start their own businesses. The Tamil Nadu Industrial Investment Corporation Limited (TIIC) implements the scheme.
The New Entrepreneur and Enterprise Development Scheme (NEEDS) helps young and educated entrepreneurs start businesses in Tamil Nadu with the support of the state government. The scheme offers financial and technical assistance to help entrepreneurs overcome the challenges of starting a new business and achieving financial stability. With its attractive benefits and easy application process, NEEDS is an excellent opportunity for young entrepreneurs to turn their dreams into reality.
Objectives of NEEDS Scheme
- To provide opportunities for young and educated entrepreneurs to start their own businesses.
- To encourage and support the growth of new micro and small enterprises in the manufacturing and service sectors.
- To provide financial and technical assistance to young entrepreneurs to help them overcome the challenges of starting a new business.
Important Links
| S.NO | G.O & Guidelines | G.O Date |
|---|---|---|
| 1 | NEED SCHEME GUIDELINES | G.O(Ms)No.49, MSME(D2) Department dated 29.10.2012 |
| 2 | EDP Training Exemption for candidates already attended similar EDP Training conducted by EDI/MSME DI/ Banks etc., | G.O(Ms)No.46, MSME(D2) Department dated 08.09.2014 |
| 3 | Payment made by cash ineligible for subsidy | ICDI&C’s letter No. 12694/NEEDS/2017 dated 03.07.2017 |
| 4 | Restriction for Mobile service units under NEEDS | ICDI&C’s letter No. 31303/NEEDS/2012dated 27.08.2013 |
| 5 | No any last date for receiving quarterly claim for 3% Interest Subvention under NEED Scheme | ICDI&C’s letter No.20839/NEEDS/2016 dated 05.12.2016 |
| 6 | NEED SCHEME AMENDED GUIDELINES | G.O.(Ms) No. 13, MSME(D2) Department dated 24.04.2018 |
| 7 | MICRO, SMALL AND MEDIUM ENTERPRISES (D2) DEPARTMENT | G.O.(Ms) No. 30, MSME(D2) Department dated 01.10.2018 |
Eligibility Criteria for NEEDS Scheme
- The applicant must be a resident of Tamil Nadu for at least 3 years.
- The applicant must be aged between 21-35 years (General Category) or 21-45 years (Special Category including women, SC/ST, BC/MBC, minorities, ex-servicemen, transgender, and differently-abled persons).
- The minimum project cost is Rs. 10 lakh and the maximum project cost is Rs. 5 Crore.
- The applicant must have any degree, diploma, ITI or vocational training from a recognized institution.
- The applicant should not have availed any assistance under other schemes such as PMRY/PMEGP/REGP/UYEGP/TAHDCO, SHG, or any other scheme of the central or state government.
Eligible Activities for Assistance under NEEDS Scheme
All manufacturing and service activities are eligible for assistance under the NEEDS Scheme, provided they meet the viability criteria outlined by TIIC (Tamil Nadu Industrial Investment Corporation) or banks. The scheme gives priority to projects that are eco-friendly, promote energy conservation, and have an export-oriented focus.
Ineligible Activities for Assistance under NEEDS Scheme:
- Agricultural activities directly connected with farming.
- Sericulture (Cocoon rearing) and Animal Husbandry activities such as Pisciculture, Piggery, and Poultry.
- Manufacturing of Polythene carry bags with less than 40 microns thickness, and production of carry bags or containers made from recycled plastic for food packaging.
- Sugar manufacturing.
- Distilleries, breweries, and malt extraction.
- Units utilizing Molasses, rectified spirit, or denatured spirit for potable alcohol production.
- Fertilizer manufacture and blending (except for bio-fertilizers).
- Mining and quarrying of ores and minerals (excluding ore or mineral processing activities such as polishing, cutting, crushing, etc.).
- Aluminium, iron, and steel smelting (excluding foundries).
- Manufacturing of intoxicant items such as Beedi, Pan, Cigar, or Cigarettes.
- Sawmills.
- Cement production.
- Calcium Carbide manufacturing.
- Slaughterhouses.
- Repackaging of drugs, medicines, or chemicals without any processing or value addition.
- Azoic or Reactive Dye manufacturing.
- Firecracker production.
- Industries involved in manufacturing or utilizing ozone-depleting substances.
- Industries engaged in hazardous activities or classified as “Red category” by Tamil Nadu Pollution Control Board or Central Pollution Control Board.
- Cyanide production.
- Caustic Soda manufacturing.
- Potassium Chloride production.
- Nylon, Rayon, and Polyester Fiber manufacturing (excluding downstream product manufacturing).
- Real estate development.
Benefits of NEEDS Scheme
- The maximum subsidy allowance for projects that cost more than 1.20 crore rupees is 30 lakh rupees.
- The project cost may include the price of land, either at the guideline rate or the actual market cost, whichever is lower.
- You can include building construction costs in the project budget, but not more than 25% of the project cost.
- The entrepreneur would be eligible to cover the expense of either new or pre-owned equipment imported directly.
- The subsidy amount is set at 25% of the project cost, with a maximum of Rs. 30 lakh.
Required Documents for NEEDS Scheme
- Proof of residence (Aadhaar Card or Voter ID)
- Age proof (Birth Certificate or 10th Standard Mark sheet)
- Educational qualification certificate
- Proof of ownership or rent agreement of the proposed business place
- Project report
- Bank statement of the last 6 months
- PAN Card
How to Apply
The online application process for NEEDS Scheme can be easily completed by visiting the official website of TIIC. Interested applicants can also approach the nearest District Industries Center for assistance with the application process.
Step 1: Visit the official website To start the process, visit the official website at https://msmeonline.tn.gov.in/needs/index.php. This will take you to the home page of the NEEDS Scheme.
Step 2:
Click on “Apply Online” Once you’re on the home page, scroll over the “Apply Online” tab and click on the “New Application” link.
Step 3:
Register or Log In You will be redirected to the NEEDS Scheme registration/login page, where you will be prompted to either register or log in. If you haven’t registered yet, click the “Register” link and complete the online registration form.
Step 4:
Login and go to the “Apply Online” page Once you’ve registered or logged in, you will be taken to the NEEDS Scheme apply online page.
Step 5: Fill out the application form On the apply online page, you will find the NEEDS Scheme online application form 2023. Fill out the form with all the necessary information, making sure to follow the guidelines in the “DOs AND DON’TS WHILE FILING ONLINE APPLICATION” document, which can be found at https://msmeonline.tn.gov.in/needs/pdf/Dos_Donot.pdf.
Step 6:
Upload Documents In the application form, you will also be asked to upload certain documents. Make sure you have all the required documents ready before you start filling out the form.
Step 7:
Download and submit the application Finally, after you’ve filled out the form and uploaded the necessary documents, you will be able to download the completed application form. Make sure to double-check everything before submitting it.
Loan Enquiry for NEEDS Scheme
- Visit TIIC Website: Go to https://www.tiic.org/, the official website of Tamil Nadu Industrial Investment Corporation (TIIC).
- Find Loan Enquiry: Look for the loan enquiry section on the website.
- Submit Details: Fill in the required personal, contact, and business details in the loan enquiry form.
- Choose NEEDS Scheme: Select the NEEDS Scheme as your loan option.
- Submit Form: Click on the submit button to send your loan enquiry.
Loan Calculator for NEEDS Scheme
- Visit TIIC Website: Go to https://www.tiic.org/, the official website of Tamil Nadu Industrial Investment Corporation (TIIC).
- Locate Loan Calculator: Find the loan calculator section on the website.
- Enter Loan Details: Input the loan amount, interest rate, and loan tenure in the calculator form.
- Calculate Loan: Click on the calculate button to generate the loan calculation results.
- Analyze Results: Review the monthly instalment, total interest, and repayment amount provided by the loan calculator.
| Official Website | Click Here |
| Alternative Official Website | Click Here |
| Official Guideline pdf | Click Here |