Financial Schemes By Tamil Nadu Government For Business

Updated on Jan. 27, 2022, 6:05 a.m.

Industries and business play a major role in the growth and development of our economy. These are the prime drivers for generating jobs and the growth of GDP. Tamil Nadu is the major contributor to the Indian GDP (Gross Domestic Product). These make Tamil Nadu, an ideal place for FDI (Foreign Direct Investment) and enhance domestic investments. We will discuss the financial policies introduced by the Tamil Nadu government in recent years.

New Entrepreneur cum Enterprise Development Scheme (NEEDS)

The New Entrepreneur cum Enterprise Development Scheme (NEEDS) is a scheme introduced by the Government of Tamil Nadu to:

Assisting the educated youth of Tamil Nadu to become the first generation entrepreneurs.
Convert them from job takers to job givers and make difference to their personal life and professional life.
Encourage investment in Service and Manufacturing segments.

Following person are eligible to apply under NEEDS scheme to avail financial assistance:

Citizen of India from 21 years to 35 years for general category.
Upper age limit is 45 years for categories like SC, ST, Minorities, MBC, Differently abled persons and Transgender.
Unemployed youth from age of 21 years willing to start their own business and make a mark.
Should be the resident of Tamil Nadu for not less than 3 years.
Must start their business as a partnership/proprietorship and the business must be a new business.
Entrepreneurs get assistance under PMRY (Pradhan Mantri Rozgaar Yojna) and others are not eligible.

There is no ceiling on income and anyone can apply under this scheme.

Entrepreneur applying under NEEDS scheme will receive following financial benefits in form of subsidies:

25% of the project cost subject to a ceiling of INR 25 Lakhs.
3% back ended interest subsidy for the bank assisted projects.
3% Interest subvention for TIIC Assisted Projects.

Further one month of training with stipend will be provided.

Procedure to apply under NEEDS scheme

The district Industries center receives the application for the NEEDS scheme. Furthermore, it will inspect the application and place before a task force committee. The task force committee will select the application and send it to the respective branch of the bank. After completing the one month EDP, the aspiring entrepreneur will deposit the promoter’s contribution with the bank that has sanctioned the loan amount. After giving loan, the subsidy will be released to the bank, in stages as per the size of the project.

Following documents are required to apply under NEEDS scheme:

Copy of birth/Transfer Certificate
Residential Proofslike Ration card, Aadhar Card, Residential Certificate from Tahisildar.
Copy of Diploma/Degree Certificates.
Project report with projected sales/cash flow statement for the next 3 years.
Copy of property documents.
Estimate of the building obtained from the Civil Engineer.
Machinery/Equipment Quotations.

Unemployed Youths Employment Generation Program (UYEGP)

The UYEGP (Unemployed Youths Employment Generation Program) is introduced by the government of Tamil Nadu to reduce the unemployment issue.

UYEGP scheme was started with following objectives:

Helping the educated youth of Tamil Nadu to become self-reliant.
Reduce unemployment issue of socially/economically weaker sections.
To enhance their wage earning capacity.
Improve urban and rural economy of Tamil Nadu.

Under this scheme subsidy of 15% is provided.

Following financial assistance is provided.

NO	CATEGORY	PROMOTERS CONTRIBUTION	BANK LOAN	SUBSIDY
1	General	10%	90%	15%
2	SC/ST/BC/MBC/Minorities /PWD/Ex-servicemen, Transgender.	5%	95%	15%

CATEGORY

PROMOTERS CONTRIBUTION

BANK LOAN

SUBSIDY

General

10%

90%

15%

SC/ST/BC/MBC/Minorities

/PWD/Ex-servicemen, Transgender.

95%

15%

Some unique features of UYEGP scheme are:

Repayment schedule is for 5 years after an earlyfreeze of six months of projects.
For marketing your company and products, the district GM, Industries Centre Manager, arrange exhibitions, fairs, buyer and seller meets.

Procedure to apply under UYEGP Scheme

The government will advertise this scheme using the print and the social media. Residents are requested to read the eligibility criteria and submit applications like Nativity Certificate, Caste, Physically Handicapped Certificate and others must be submitted within the time frame to the General Manager, District Industries Centre. The manager will select the beneficiary using interview process.

The subsidy assistance will be 25% of the project costs, up till INR 1,25,000 is given under these schemes. You can also apply online.

Eligibility for subsidies under UYEGP scheme

Citizen of India from 18 years to 35 years for general category.
Upper age limit is 45 years for categories like SC, ST, Minorities, MBC, Transgender and Differently abled persons.
Eight standard pass.
Living in Tamil Nadu for not less than 3 years.
Family income must not exceed INR 1, 50,000 per annum.

Documents required for UYEGP scheme:

Proof of age.
Copy of Diploma/Degree Certificates.
Nativity Certificates.
Certificate for differently abled, ex-serviceman and others.
Project report with cash flow statements.
Affidavit from notary as per their requirements.
Caste Certificate.
Building estimate from architects.
Partnership deed copy, if it is a partnership firm.

Tamil Nadu State Awards to Entrepreneurs

Government of Tamil Nadu is giving awards for the exemplary work done by the entrepreneurs in District/State levels, to motivate them. Some of them are

State level award for best Women Entrepreneur-- INR 50,000 cash and memento worth INR 10,000.
District level award for best Entrepreneur—INR 10,000 worth memento.
State level award for Agro Units—INR 50,000 cash and memento worth INR 10,000.
State level award for Quality and Exports --- INR 50,000 cash prize and memento INR 10,000.

Woman Entrepreneurship Development Program (WEDP)

The major aim of the WEDP is to offer the training to women to plan, execute and carryout economic activities and improve your own business. 600 women were trained and educated on scope and financial assistance given in the last 2 years. They guide the women in upgrading technical skills, training for self-reliance, enhance managerial ability, and spirit of teamwork.

Objectives:

Helping the women of Tamil Nadu to become self-reliant.
Reduce unemployment issue of socially/economically weaker sections.
Convert them from job takers to job givers and make a difference.
Protect the interest of women and promote their welfare by all means.

Eligibility:

Women living in Tamil Nadu for more than 3 years.
Age must be between 18 to 45 years.
Must be diploma holder.
Student’s, partners and housewife can apply.

Document Details:

Residential Proofs like Ration card, Aadhar Card, Residential Certificate from Tahisildar.
Copy of birth/Aadhar/PAN/Transfer Certificate.
Copy of Diploma/Degree Certificates.
Project report with projected sales/cash flow statement for the next 3 years.
Legal and Property documents.
Building estimate obtained from the Civil Engineer.
Machinery/Equipment Quotations.

Procedure for applying:

The government will advertise this scheme using offline and online resources. Women are requested to read the eligibility criteria and submit applications like Nativity Certificate, Physically Handicapped Certificate, Land Related Documents, Legal Docs, Sale Deed and others must be submitted within the time frame to the General Manager, District Industries Centre. The manager will select the recipient after a brief interview.

Features of Woman Entrepreneurship Development Program (WEDP):

Deals with basics and current scenarios.
Identifying great business opportunities.
A good market survey is offered here.
Offers project identification and Guidance.
Gives analysis on Intellectual Property Rights.
Discuss the role of financial institutions and banks.
Gives motivation training to the customers.
Discuss the role of supporting agencies and schemes.
Share the online and offline experiences in various segments like the agriculture, solar, handicrafts, food processing, textiles and others.