NEEDS Scheme (New Entrepreneur cum Enterprise Development Scheme)

Objectives of NEEDS Scheme

The educated youth will be provided entrepreneurship training to prime them as the first generation entrepreneurs on the fundamentals of planning, initiating, launching, and conceiving a manufacturing and enterprise productively. After completing the training program, they will be supported to organize their business plans and facilitated to collaborate with banks to get term loans and to build enterprises with a project value of around INR One Crore along with capital subsidy of INR 25 lakhs with 3% interest funding to be given by the State Government. With this accessibility, the fresh entrepreneurs will also be granted a reservation of 25% for the allocation of Plots in SIDCO Industrial Estates in the State.

Target group

Any scholar with Degree, Diploma, ITI, and Vocational Training from renowned universities, aspiring to become entrepreneurs would be eligible for assistance under the Scheme. 

State Level Nodal Agencies

The Organizations mentioned below will work as the Implementing Agencies for the successful execution of the different mechanisms of this Scheme. The Commissioner of the industries and Director of Industries will be in charge of the implementation of the Scheme under the control of the Principal Secretary of SMEs.

Component of the Scheme

Method of the Training

The learners would be rendered to Behavioural Components, Business Opportunity Guidance, Management issues, and Technical Training, Information on Entrepreneurship support Institutions, Business Laws and Regulations related to Micro and Small Enterprises. This inventive method of Training with the blend of Behavioural & Management Games, regular contact with successful entrepreneurs, Lecture cum discussion with audio-visuals along with intense Technical Training and Exposure visits will be adapted.

Duration of the Training and Batch 

The tenure of the Training will be for one month that comes with two weeks of theoretical training, the first week is for market survey and then the next week will be about the research of Project Report. This Training is all about increasing the interaction of the students, and that is why the batch size will be limited to 25. A total of one thousand entrepreneurs are planned to be trained each year during the next five years, from 2012-13 onwards, at an average each year.

Courses Offered

  • Behavioural Components 

  • Business Opportunity Guidance 

  • Business Plan Preparation 

  • Management Issues 

  • Laws regulating the Small Business 

  • Environment Scanning - An overview of the Entrepreneurship support institutions

Activities covered

 Every economically workable built-up and service actions are qualified under this Scheme focused on the appraisal for its capability based on rules provided by Tamil Nadu Industrial Investment Corporation Limited (TIIC) / Bank. Importance will be specified for eco-friendly projects, deal with the significance of energy conservation, and are export-related.

Selection of the beneficiaries

The selection of beneficiaries will be through the District level by one Task Force including the District Collector as its Chairman, General Managers, District Industries Centres / Regional Joint Director of Industries and Commerce, Chennai as a member - 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. The District Level Task Force Committee will monitor the applicants.



Minimum 21 years and Maximum 35 years for general category

45 years for Special category(SC/ST/BC/MBC/Exservicemen/ Minorities/Transgenders/Differently abled persons)


Degree/ Diploma/ ITI / Vocational training from Renowned universities

Place of residence

The applicant should be a resident of Tamil Nadu.

Promoters Contribution

General Category: 10% of the project cost

Special category : 5% of the project cost


SC: 18%

ST: 1%

Differently-abled : 3%


More than one person can mutually set up Partnership enterprises granted all the partners should fulfill the eligibility criteria. But, EDP training will be given to only one of the partners endorsed by other partners in those cases. 

Eligible Activities 

All economically possible manufacturing and service activities are qualified.

Ineligible Applicants 

Aid under this Scheme is only for NEW Projects. Entrepreneurs who have already subsidy linked loans under State Government / Government of India schemes such as Prime Minister Rojgar Yojana (PMRY), Rural Employment Generation Programme (REGP), Prime Minister’s Employment Generation Program(PMEGP), Unemployed Youth Employment Generation Programme(UYEGP), TamilNadu Adi Dravidar Housing and Development Corporation Limited (TAHDCO) and Self-help group will not qualify for help under NEEDS. 

Project Cost

The least cost for the project will be over INR five lakhs, and the maximum amount will be INR one Crore. The projects that cost more than INR one Crore, then the subsidy factor will be limited to INR 25 lakhs. 

The price of the land might be incorporated in the Project cost at market value, generally as on the date of submitting the loan application.

The construction rate of buildings such as Office, Work-shed/Workshop, Laboratory, etc., can be incorporated in the project cost subject to the terms that the price of a building must not go over 25% of the total project cost. General Managers will evaluate the evaluation of the building qualified for a subsidy, 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 initiation of construction of the building as certified by the Chartered Engineer. In admiration of service enterprises, investment in capital expenditure should not be less than 25% of the total project cost. 

The price of the rental building should not be added to the Project cost. 

The Project cost will be added capital expenditure and margin money for working capital.

Self-financed projects are not allowed for this Scheme.

Tamil Nadu Industrial Investment Corporation Limited (TIIC) / Banks are permitted to appear at the mechanism of project cost based on their appraisal guidelines.

Frequently Asked Questions

Q. What is the NEEDS scheme?

Needs scheme is for educated youth who will be given entrepreneurship on how to manufacture or service enterprise successfully.

Q. Who can apply for it?

Any Degree, Diploma, ITI / Vocational Training from a recognized university can apply for the Scheme.

Q. What is the duration of the course?

The length of the course is two weeks.

Q, How will I get selected?

The selection will be done at the district level.

Q. What is the minimum age eligibility for NEEDS Scheme?

You are supposed to be in between 21-35 years old to be eligible for this Scheme.

Q. Is there any reservation?

Yes, 18% for SC and 1% for ST, along with 3% for differently-abled.

Q. What is the official website for this scheme?

The official website for this scheme is

Q. What is the maximum cost of the project?

The maximum cost of the project will be one Crore.

Q. Is this provided by the central government?

No, this Scheme is provided by the central government.

Q. Can I apply for it even if I am not from Tamil Nadu?

No. This is for only the residence of Tamil Nadu.

Q. What is the subsidy rate?

A subsidy of 25% of the project cost, not beyond INR 25 lakhs, is given under the NEEDS Scheme.