Schemes of DIC


Objectives of the Scheme:

  • To provide educated youth entrepreneurship training to make them as entrepreneur.
  • To assist them in project preparation and in getting financial assistance with 25% subsidy and 3% interest subvention.
  • To provide them with a reservation of 25% in allotment of plots / sheds in SIDCO estates subject to availability.

Target Group:
Educated youth with any Degree, Diploma, ITI / Vocational Training from recognized Institutions, aspiring to become entrepreneurs.
Eligibility criteria:



21 to 35 years for General category Entrepreneurs
21 to 45 years for  Special Category Entrepreneurs  (Women / SC / ST / BC / MBC / Minorities / Ex-Servicemen / Transgenders / Differently abled persons)



Degree, Diploma, ITI / Vocational Training from recognized Institutions.


Place of residence

Should be a resident of Tamil Nadu State for not less than 3 years


Income ceiling

No income ceiling for assistance for setting up projects under this scheme


Eligibility of
Partnership firms

Subject to satisfying the eligibility criteria by all the partners, partnership concerns may be considered for assistance under the scheme. EDP training will be provided to only one of the partners.


Other conditions

  • Assistance is available only for new projects  sanctioned specifically under the NEEDS.
  • Entrepreneurs who have already availed assistance PMRY, REGP, (PMEGP), UYEGP), (TAHDCO) or any other scheme of Government of India or State Government will not be eligible .
  • 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 / TIIC.


Activities covered:
All economically viable 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.

Selection of beneficiaries:
The beneficiaries under the scheme will be selected by a District level Task Force committee with

  • District Collector as Chairman
  • General Manager, DIC as Member - Convener,
  • Lead Bank Manager
  • Branch Manager of Banks / TIIC
  • Branch Manager, TANSIDCO,
  • District Manager, TAHDCO,
  • District Employment Officer  and
  • 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 members.

Project Cost:

  • 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
  • Project cost will include capital expenditure and margin money for working Capital.
  • Projects without capital expenditure are not eligible.
  • Self financed projects will not be eligible.

Promoter's Contribution:

  • 10% of the Project Cost for general category entrepreneurs.
  • 5% of the Project Cost in case of special category entrepreneurs (BC / MBC / DNC / SC / ST / Women / Minorities / Ex-Servicemen / Transgenders / Differently abled Entrepreneurs).


  • 25% of the Project Cost subject to a ceiling of Rs.25.00 lakhs.
  • Following expenses will not be considered for  subsidy :
    a. Cost of rented/leased building
    b. Technical know-how
    c. preliminary/ pre-operative expenses
    d. working capital margin

Interest Subvention:
Enterprises financed by TlIC
Will be extended loan with 3% interest rebate which will be reimbursed to TlIC on a quarterly basis. TlIC should send their claim to Industries Commissioner on completion of every quarter.
Enterprises financed by Banks
A back-ended interest subsidy at the rate of 3% will be provided to enterprises financed by Banks on a quarterly basis during the entire repayment period. The Banks / Financial Institutions should send their claim to the concerned General Manager, District Industries Centre on completion of every quarter.

Financial Institutions:

  • Tamil Nadu Industrial Investment Corporation Limited (TIIC Ltd.)
  • All Commercial Banks including Regional Rural Banks (RRB), Small Industries Development Bank of India (SIDBI).

Collateral Security:

  • Collateral security will be decided as per Bank / Tamil Nadu Industrial Investment Corporation Limited (TlIC) guidelines.
  • Loans may also be covered under Credit Guarantee Fund Trust Scheme for Micro and Small Enterprises (CGT-MSE) Scheme.