Unemployed Youth Employment Generation Programme:

• It aims to mitigate the unemployment problems of socially and economically weaker sections of society, particularly among the educated and unemployed youth of the state.
• The youth of the state will become self-employed by setting up Manufacturing/ Service / Business enterprises by availing loans up to the maximum of ?15 Lakhs and ?5 Lakhs respectively

Subsidy

• Under the scheme, subsidy assistance will be provided by the State Government up to 25% of the project cost (Maximum to a limit of ?3.75 Lakhs) for setting up Manufacturing/ Service / Business enterprises.

Eligibility:

• The applicant should be a permanent resident of Tamil Nadu.
• Applicants must be of age between 18-45 in general and for special (Women/Minorities/ BC/MBC/SC/ST/Ex-servicemen/Transgenders/Differently abled), age relaxation up to 55 years
• The applicant should have passed the 8th standard.
• Only Trading/Business projects with maximum Project costs Rs.15.00 lakh respectively
• Project cost should not be more than ?15 lakhs for manufacturing, and ?5 lakhs for Trading / Service projects.
• Promoter's contribution 10% for General and 5% for Special Category
• Family income should be below Rs.5.00 lakh
• Entrepreneurship Development Programme (EDP) training is mandatory.
• Loan assistance from Commercial Banks

Documents Required

• Identity proof i.e. copy of Election ID Card/ Aadhaar card etc.
• Copy of PAN Card
• Passport size photo
• Income Certificate
• Educational Qualification proof- Transfer certificate/ Record Sheet issued by School/College.(Two Copies)
• Proof of age
• Caste/Community Certificate
• Ration Card (In case of applicants who don't possess a valid Ration Card, a Nativity certificate from the Thasildhar/ Aadhar card xerox / Election voters identity card Xerox)
• Project Report
• Valid Quotations with GST number
• Valid certificate for Ex-Serviceman /Differently abled /Transgender
• Bank account details
• Affidavit - For reference to the candidate which should be typed in a ?20/- Non-Judicial Stamp Paper duly Certified and Signed by the Notary Public and then submitted along with a copy of the Rental/Lease Agreement to the bank while sanctioning the loan.

Annal Ambedkar Business Champions Scheme:

• Launched by the Department of Micro, Small and Medium Enterprises, Government of Tamil Nadu.
• The Government of Tamil Nadu noted that the share of persons from Scheduled Caste and Scheduled Tribe communities who avail of various entrepreneurship promotion subsidies from the Government is very low.
• In order to promote the economic development of SC/ST entrepreneurs, this scheme has been launched by the Government of Tamil Nadu.
• This scheme shall be implemented by the Micro, Small and Medium Enterprises Department through the Industries Commissioner and Director of Industries & Commerce (ICDIC).
• A State Level Steering Committee for the scheme shall be constituted with the Secretaries of Finance, Micro, Small and Medium Enterprises, Adi Dravidar and Tribal Welfare Departments, Industries Commissioner and Director of Industries and Commerce, Commissioner of Adi Dravidar Welfare and Commissioner of Tribal Welfare.
• This Committee will review the scheme once a quarter and suggest necessary modifications, if necessary.

Subsidy

• Under the scheme, the State Government will provide a 35% capital subsidy on the Eligible Project Cost, not exceeding ?1.5 Crore.
• A 6% interest subvention will be given for loans sanctioned under this scheme.

Note:

• Interest subvention will be given to loans sanctioned by scheduled Commercial Banks, Co-Operatives Banks, Tamil Nadu Industrial Investment Corporation, and Non-Banking Financial Companies (NBFCs) during the tenure of the loan not exceeding 10 years.
• The capital subsidy sanctioned will be provided frontend to the extent necessary to constitute margin money requirement for credit
• The working capital sanctioned for the project shall be eligible for interest subvention for a period not exceeding

Eligibility

• The applicant should be a resident of the State of Tamil Nadu.
• The beneficiaries shall be persons belonging to SC/ST communities. Enterprises supported under the scheme shall be 100% owned by persons belonging to SC/STs.
• The scheme can support both new enterprises and expansion of existing enterprises.
• The eligible enterprises can be business enterprises in the areas of manufacturing and services. Trading-related projects which are above the threshold of assistance under the existing Unemployed Youth Employment Generation Programme (UYEGP) scheme will also be covered.
• Beneficiaries shall be with age limit of 55 years.
• No minimum educational qualification
• There will be no bar on the beneficiary to claim additional capital subsidy from schemes operated by agencies not controlled by the Government of Tamil Nadu. This will include the Credit Linked Capital Subsidy Scheme (CLCSS) of the Union Government, schemes of Coir Board, etc.,
• Entrepreneurship Development Training will be given to all beneficiaries by Entrepreneurship Development and Innovation Institute, as done in the case of the New Entrepreneur-cum- Enterprise Development Scheme (NEEDS).

Note:

• Project cost include land, plant, machinery, testing equipment and computing devices with cost of land not exceeding 20% of project cost. Vehicles shall be considered if it integral to the business process.
• This training will be given even for prospective applicants or their wards where subsidy applications are under process. Convergence with existing training schemes of the Government, including the Tamil Nadu Skill Development Corporation (TNSDC) will also be implemented for this purpose.

Documents Required

• Identity proof i.e. copy of Election ID Card/ Aadhaar card
• Copy of PAN Card
• Passport size photo
• Proof of age
• Caste/Community Certificate
• Residence proof
• Bank account details
• Any other documents, if required

New Entrepreneur-cum-enterprise Development Scheme: (Needs)

• Launched by the Department of Micro, Small and Medium Enterprises, Government of Tamil Nadu.
• Educated youth will be given entrepreneurship training to groom them as first-generation entrepreneurs on the essentials of conceiving, planning, initiating, and launching a manufacturing or service enterprise successfully.
• On completion of the training program, they would be assisted to prepare their business plans and helped to tie up with financial institutions to get term loans, to set up manufacturing or service enterprises with a project cost not exceeding ?5 Crore and capital subsidy of 25% of the project cost not exceeding ?75 lakhs with 3% interest subvention to be provided by the State Government.
• Subject to availability, they would also be provided with reservation up to 25% for allotment of Plots / Sheds in SIDCO Industrial Estates in the State.

Ineligible Activities

• Any activity directly connected with agriculture.
• Sericulture (Cocoon rearing), Animal Husbandry like Pisciculture, Piggery, Poultry, etc.,
• Manufacturing of Polythene carry bags of less than 40 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing, or packaging of foodstuff
• Sugar
• Distilleries, Brewery, and Malt Extraction
• Units utilizing Molasses/rectified spirit/de-natured spirit as raw material for the manufacture of potable alcohol.
• Fertilizer manufacture and blending (Except bio-fertilizers)
• Mining and Quarrying Ores, minerals, etc. [Excluding polishing, cutting, crushing, etc. of mined ores/minerals]
• Aluminium, Iron, and Steel Smelting [Excluding foundries]
• Manufacturing of intoxicant items like Beedi / Pan / Cigar / Cigarette etc.,
• Saw Mills
• Cement
• Calcium Carbide
• Slaughter House
• Re-packing of Drugs / Medicine / Chemical, without any processing or value addition
• Azoic / Reactive Dyes
• Fire Crackers
• Industries manufacturing and or utilizing Ozone depleting substances
• Industries involving hazardous activities / classified as "Red category" by Tamil Nadu Pollution Control Board / Central Pollution Control Board
• Cyanide
• Caustic Soda
• Potassium Chloride
• Nylon, Rayon & Polyester Fibre manufacturing. [Excluding manufacture of downstream products from Nylon, Rayon & Polyester Fibre]
• Real Estate
• All types of Business activities.

Subsidy

• 25% of the Project Cost subject to a ceiling of Rs.75.00 lakhs as a subsidy from the Government.
  However, the following expenses will not be considered for the calculation of subsidy under this scheme:
• Cost of rented/leased building
• Technical know-how
• Preliminary/ pre-operative expenses
• Working capital margin
• Interest subvention provided at the rate of 3%, throughout the period of repayment
• Priority in allotment in Small Industries Development Corporation (SIDCO) industrial estates.
• An additional capital subsidy is provided for 10% over the capital subsidy of the eligible project cost to the enterprises promoted by SC/ST or differently-abled candidates.

Rate of Interest

• At the rate of interest applicable to micro & small enterprises as per banking norms.

Eligibility

• The applicant should be a resident of Tamil Nadu State for not less than 3 years.
• The applicant should be a first-generation entrepreneur.
• The age of the applicant should be between 21 to 35 years in general and for special (Women/BC/MBC/SC/ST/Ex-servicemen/Transgender/Differently abled), age relaxation is up to 45 years.
• The applicant should possess a minimum 12th std./diploma/ Industrial Training Institutes (ITI) or vocational training from a recognized Institution, aspiring to become entrepreneurs would be eligible for assistance under the scheme.
• There will be no income ceiling for assistance in setting up projects under this scheme.
• Assistance under the Scheme is available only for new projects sanctioned specifically under the NEEDS.
• Entrepreneurs who have already availed assistance under Prime Minister's Rozgar Yojana (PMRY), Rural Employment Generation Programme (REGP), Prime Minister's Employment Generation Programme (PMEGP), Unemployed Youth Employment Generation Programme (UYEGP), Tamil Nadu Adi Dravidar Housing and Development Corporation Limited (TAHDCO) or any other scheme of Government of India or State Government will not be eligible for assistance under the NEEDS.
• Any applicant/entrepreneur who has availed loan for economic activity under Self Help Group/other group activity will also be not eligible.
• The applicant should not be a defaulter to any Commercial Bank / Tamil Nadu Industrial Investment Corporation Limited (TIIC).
• Entrepreneurs availing assistance under this scheme will not be eligible to avail of capital subsidy under any other State Government schemes.
• Project cost should be above ?10 lakh, and below ?5 crore.
• The applicant's contribution should be 10% of the project cost for the General category; and 5% for the Special category.
• Entrepreneurship Development Programme (EDP) training is mandatory.

Documents Required

• Identity proof i.e. copy of Election ID Card/ Aadhaar card
• Copy of PAN Card
• Passport size photo
• Educational Qualification proof
• Proof of age
• Caste/Community Certificate
• Residence proof
• Valid certificate for the proof of Ex-Serviceman /Differently abled /Transgender
• Bank account details
• Any other document, if required