Commercial Banks and Tamil Nadu Industrial Investment Corporation (TIIC) face an uphill task in attaining the target set under New Entrepreneur-cum-Enterprise Development Scheme (NEEDS) that was tweaked after the change of regime in the State last year.
The announcement by Micro, Small and Medium Enterprises Department on relaxation of educational qualification to HSC (Higher Secondary Certificate), enhancement of ceiling from ₹50 lakh to ₹75 lakh and extending of 10 per cent additional capital subsidy for eligible SC/ST and differently abled applicants was followed by scaling up of targets three or even four-fold for the districts.
According to industry representatives, the increase effected in the target mid-way through the fiscal year had made it all the more difficult for the TIIC and the commercial banks to reach even 30 to 40 per cent of the target.
The targetted number of beneficiaries, for instance, has been increased three-fold in Tiruchi district, and four-fold in backward districts in the delta region, according to the sources.
The district-level committees have been holding their sittings for identifying potential beneficiaries under the scheme in recent months. The relaxation of the educational qualification for first-generation entrepreneurs from graduation to higher secondary qualification has indeed been a comforting factor.
"It is not that first-generation graduates cannot be found, but identifying such graduates with a zeal for entrepreneurship has been a challenge," a senior official said, welcoming the provision made in the new order for relaxing the educational qualification under NEEDS.
Hitherto, the minimum qualification for availing assistance was degree/ diploma/ ITI / vocational training from a recognised institution.
Since the project cost allowed under NEEDS is ₹5 crore, which classifies the venture as small enterprise, first-generation entrepreneurs assisted under NEEDS justifiably deserve the enhancement of maximimum limit of subsidy under the scheme from ₹50 lakh to ₹75 lakh, the new order states. An additinal 10 per cent capital subsidy is provided for SC/ST and differently abled applicants.
Though these changes will have the potential to attract more number of applicants, the steep increase in the target for 2021-22 had placed the officials on their toes since the order took effect from September 2, 2021, it is learnt.
The enhanced target will, probability, be reachable over a year-long period from 2022-23 onwards, according to a branch manager of a nationalised bank.
