The State government has disbursed highest ever capital subsidy in 2022-23 under its flagship New Entrepreneur cum Enterprise Development Scheme (NEEDS), a State-funded programme, to promote first generation entrepreneurs.
The scheme run by the State’s Micro, Small and Medium Enterprises (MSME) Department has seen subsidy disbursement of ₹163.88 crore in 2022-23, when compared to about ₹97.25 crore in 2021-22. The scheme, which has been operational since 2012-13, also saw over 1,000 sanctions for the first time ever in 2022-23.
Under NEEDS, the minimum project cost is ₹10 lakh and the maximum project cost is up to ₹5 crore. The individual-based capital subsidy under NEEDS is given at the rate of 25% of the project cost (not exceeding ₹75 lakh).
Promoter’s contribution is 10% of the project cost for the general category beneficiaries and 5% for the special category beneficiaries. The rest is covered by the government subsidy and bank loan. The State government gives a 3% interest subvention on term loan throughout the entire repayment period.
Selected candidates are imparted training for 15 days by the Entrepreneurship Development and Innovation Institute. The minimum education qualification prescribed under the scheme is HSC pass. Applicants with Degree / Diploma / ITI / Vocational training from recognised institutions are also permitted to apply under the scheme. Additional capital subsidy at 10% of the project cost for beneficiaries of SC/ST/Differently-abled is being given by the State government from the year 2021-22 onwards.
The focus of the current government was that the scheme should benefit delta and other backward districts, an official said. He said manufacturing and services activities excluding trading were funded under the scheme.
Necessary hand-holding is done for entrepreneurs as per requirement to avail of financial assistance from the banks and Tamil Nadu Industrial Investment Corporation Limited (TIIC) and also to get allotment of plots / sheds in the Industrial estates of Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO) on preferential basis, according to the policy note of State MSME Department for 2023-24.
