The Tamil Nadu government has launched the “Neo-entrepreneur-cum-Enterprise Development Scheme (NEEDS Scheme)” with the aim of motivating educated youth to become entrepreneurs. Under this scheme, financial assistance is being provided to educated youth to help them become first-generation entrepreneurs. Under this scheme, educated youth will receive entrepreneurial training, which will help them connect with major industrial clients.
The Needs scheme is specifically designed for young people. They will be assisted in developing their business plans, as well as helping them establish partnerships with financial institutions to establish new business ventures.
Objective of Needs Scheme
The Needs Scheme aims to provide entrepreneurship training to educated youth, giving them the necessary information to conceptualize and successfully launch a manufacturing or service enterprise. Upon completion of the training programme, they will be assisted in preparing their business plans.
Additionally, assistance will be provided in establishing partnerships with financial institutions to obtain loans. Under the Seeds Scheme, the state government will provide a capital subsidy of 25% of the project cost, along with a 3% interest subsidy, for setting up service enterprises.
List of Ineligible Activities
- Any activity directly related to agriculture.
- Silk production (cocoon farming), animal husbandry such as fish farming, pig farming, poultry farming, etc.
- Manufacture of polyethylene carry bags less than 40 microns thick and storage of food items.
- Manufacture of carry bags or containers made from recycled plastic for distribution or packaging.
- Sugar distilleries, breweries and malt extraction units which use molasses/rectified spirit/naturally denatured spirit as raw material for manufacturing potable alcohol.
- Manufacture and blending of fertilizers (except biofertilizers) Mining and excavation of ores, minerals etc.
- Aluminium, iron and steel smelting [except foundries] Manufacture of intoxicants like beedi/paan/cigar/cigarette etc.
Eligibility for the Needs Scheme
- The applicant must have been a resident of Tamil Nadu for at least three years.
- The applicant must be a first-generation entrepreneur.
- The applicant’s age should generally be between 21 and 35 years.
Documents required for Needs Scheme
- Identity proof
- Copy of PAN card
- Passport-sized photograph
- Educational qualification proof
- proof of age
- Caste/Community Certificate
- proof of residence
- Valid certificate to prove veteran status/disabled status/transgender identity
- Bank account details
- Any other documents, if required
Stage 01: Applicant who wishes to avail loan under NEEDS scheme should fill the online application through the official website of Micro, Small and Medium Enterprises Department, Government of Tamil Nadu.
Stage 02: On the home page, click on “Apply Online” and then “New Application”.
Stage 03: Click on ‘Register’ and fill in details like name, date of birth, email ID, Aadhaar number and mobile number.
Stage 04: After successful registration, click on ‘Login’ and fill all the mandatory details.
Stage 05: Upload all the required documents and submit the application form.
NEEDS (New Entrepreneur-cum-Enterprise Development Scheme) is a special scheme of the Tamil Nadu Government, which is being operated by the Micro, Small and Medium Enterprises Department. The aim of this scheme is to encourage educated youth to become first-time entrepreneurs and provide them with necessary training, financial assistance and guidance.