The NEEDS scheme by the Tamil Nadu government aims to provide capital and interest subsidies to educated unemployed youth to start their own businesses. Applicants must have a degree or vocational training and live in Tamil Nadu for 3+ years. Project costs can be between Rs. 5 lakh to Rs. 1 crore, and include land, buildings up to 25% of costs, and working capital. Entrepreneurs aged 21-35 general or 21-45 for special categories can apply as proprietors or partners for new businesses. They receive a month of entrepreneurship training and must contribute over 10% of project costs. Eligible projects include manufacturing and services.

3. •Scheme promoted by the Directorate of Industries and
Commerce(DIC), Government of Tamil Nadu.
•The objective of the scheme is to provide educated
youth with opportunities for entrepreneurship by
providing capital and interest subsidy.
•Educational Qualification: Any Degree, Diploma, ITI /
Vocational Training from recognized Institutions.
•Place of Residence: The entrepreneur should be a
resident of Tamil Nadu for not less than 3 years.

4. Project Cost
i) The minimum Project Cost will be above Rs.5.00 Lakhs and the
maximum Project Cost will be Rs.1.00 Crore. For projects costing
more than Rs.1.00 crore, subsidy component will be restricted to
Rs.25 lakhs.
ii) Cost of the land may be included in the Project cost at guideline
value or market value, prevailing as on the date of filing of loan
application, whichever is lower.
iii) Cost of construction of buildings such as Office, Work-
shed/Workshop, Laboratory etc., can be included in the project cost
subject to the condition that the cost of building shall not exceed
25% of the total project cost
iv)The cost of leased/ rental building shall not be included in the
Project cost

5. •Business Entity: Entrepreneurs starting their business
as a proprietorship or partnership are eligible for the
subsidy under the NEEDS Scheme. Also, the business
should be a new business.
•Collateral Security: Collateral security will be
decided as per Bank / Tamil Nadu Industrial
Investment Corporation Limited (TlIC) guidelines.

6. Age Criteria:
•All entrepreneurs within the age of 21 to 35 are eligible
under the General Category.
•Entrepreneurs within the age of 21 to 45 who are
also Women / SC / ST / BC / MBC / Minorities / Ex-
Servicemen / Transgenders / Differently abled persons
are eligible under the Special Category.
•subsidy : 25% of the project cost not exceeding
Rs.25.00 lakhs is provided. For projects costing more
than Rs. 1.00 Crore, subsidy component is restricted to
Rs. 25.00 lakhs.

7. •Promoter Contribution: More than 10% of the Project
Cost for general category entrepreneurs and 5% of the
project cost in case of special category entrepreneurs (BC
/ MBC / DNC / SC / ST / Women / Minorities / Ex-
Servicemen / Transgenders / Differently abled
Entrepreneurs).
Financial Institutions
i. Tamil Nadu Industrial Investment Corporation Limited
(TIIC Ltd.)
ii. All Commercial Banks including Regional Rural
Banks (RRB), Small Industries Development Bank of
India (SIDBI).

8. Training Institute :
The Entrepreneurship Development Programme (EDP) Training
will be imparted through Entrepreneurship Development
Institute, Guindy, Chennai.
Duration of the Training programme :
Duration of the EDP Training programme will be for one month
(with stipend) which includes 2weeks theoretical training, 1
week for market survey and 1 week for preparation of
Project Report.

9. Other Conditions
•Projects without capital expenditure or self financed projects
are not eligible for the subsidy.
• Entrepreneurs who have already availed subsidy linked loans
under other State Government / Government of India schemes
•Projects without capital expenditure or self financed projects
are not eligible for the subsidy. Entrepreneurs who have
already availed subsidy linked loans under other State
Government / Government of India schemes
•Only for New projects

10. Activities eligible for assistance under NEEDS
scheme
•All manufacturing and service activities are eligible
under this scheme subject to appraisal for its viability as
per the guidelines of TIIC / Bank.
•Priority will be given to projects which are eco-
friendly, accord importance to energy conservation and
are export oriented.