NEED Scheme | The Tamilnadu Industrial Investment Corporation Ltd

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New Entrepreneur cum Enterprise Development Scheme (NEEDS)

Objective	Assisting educated youth to become first generation entrepreneurs.
Eligibility	New Micro and Small enterprises in manufacturing and service sectors Educated youth with any degree, Diploma, ITI/vocational training from a recognized institution and in the age group of 21-35 years under General category and 21-45 years under special category (Women / SC / ST / BC / MBC / Minorities / Ex-serviceman / Transgender / Differently abled persons) The applicant should be a resident of Tamilnadu State for not less than 3 years. Partnership firms: Subject to satisfying the eligibility criteria by all the partners, partnership concerns may be considered for assistance under the scheme. However EDP training will be provided to only one of the partners authorized by other partners in such cases. Entrepreneur who availed assistance under PMRY/PMEGP/REGP/UYEGP/TAHDCO, SHG or any other scheme of Govt. of India or state Govt. will not be eligible for assistance.
Purpose	Minimum Project Cost: Rs.10.00 lakh. Maximum project cost: Rs.500.00 lakh. For projects costing more than Rs.1.20 crore, Subsidy component will be restricted to Rs.30.00 lakh. Cost of land may be included in the project cost at Guideline value or market value whichever is lower. Cost of construction of building such as office, workshed, laboratory etc. can be included in project cost subject to the condition that the cost of building shall not exceed 25% of project cost. In respect of service enterprises, investment in capital expenditure should not be less than 25% of the total project cost. In respect of Plant & machinery, only new machinery and secondhand machinery directly imported by the entrepreneur would be eligible. The cost of leased/rental building shall not be included in the project cost.
Training	Entrepreneurship Development Institute (EDI) , Guindy, Chennai will give training to the identified beneficiaries.
Promoter’s Contribution	10% for general category entrepreneurs. 5% for special category entrepreneurs.
Eligible Subsidy	The quantum of subsidy will be 25% of project cost subject to a ceiling of Rs.30.00 lakh.
Repayment Period	Upto 9 Years including holiday period of 2 years
Collateral Security	50% on the proposed loan amount