The Migrants Employment Generation Programme (MEGP) is a scheme launched by the Government of Tamil Nadu to assist Non-Resident Tamils (NRTs) who returned to Tamil Nadu due to the Covid-19 pandemic. The scheme is aimed at providing self-employment opportunities by setting up small-scale enterprises in various sectors such as manufacturing, services, and business. The scheme is designed to help migrant returnees who have the skills and potential to become small-scale entrepreneurs.
This initiative is implemented by the Commissionerate of Industries and Commerce and the Commissionerate of Non-Resident Tamils at the state level. It seeks to create employment opportunities for the migrant workers and also generate employment for others by enabling them to establish small-scale businesses.
Objectives
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Generate employment opportunities for migrant returnees by helping them establish self-employment ventures.
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Provide livelihood opportunities to those who have lost jobs due to Covid-19.
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Facilitate access to collateral-free advances under the Credit Guarantee Trust for Micro, Small Enterprises (CGTMSE).
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Promote the formalization of businesses for migrant returnees to contribute to the economy.
Maximum Project Cost
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Manufacturing sector: ₹15 lakhs
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Service and business sector: ₹5 lakhs
Promoter’s Contribution
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General category: 10%
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Special category (SC/ST/OBC/MBC/Women/Physically Challenged/Ex-Servicemen/Transgender): 5%
Eligibility
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The applicant must have returned to Tamil Nadu after 01-01-2020 due to the Covid-19 outbreak.
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The applicant should be between the ages of 18 to 45 years (with age relaxation up to 55 years for special categories).
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Minimum educational qualification: 8th standard pass.
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The family income should be below ₹5.00 lakh.
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For manufacturing/trading/service projects, the maximum project costs are ₹15 lakh for manufacturing and ₹5 lakh for service/business sectors.
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Promoter’s contribution is 10% for general applicants and 5% for special categories.
Application Process
Online Process
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Register:
• Visit the official website of Tamil Nadu MSME Department.
• Click on “Apply Online” and then “New Application”.
• Complete registration with details like Name, Date of Birth, Aadhaar Number, Email, and Mobile Number.
• Create a login name and password, and complete the captcha code. -
Login and Apply:
• After successful registration, log in using your credentials.
• Fill out the application form and upload all the necessary documents.
• Submit the application form and note the reference number for future tracking. -
Post-Application Process:
• Applications will be reviewed by the District Industries Centres (DICs).
• The Task Force Committee will review the application based on experience, qualifications, and project viability.
• Personal interviews may be conducted, and provisional sanctions will be issued by the bank branches. -
Training:
• Applicants must undergo a two-day Entrepreneur Development Programme (EDP) organized by the Entrepreneur Development Institute of Tamil Nadu. -
Disbursement and Subsidy:
• After completion of the EDP training, the promoter’s contribution is deposited with the bank, and the first installment of the loan is disbursed.
• The subsidy of 25% of the project cost (maximum ₹2.5 lakh) will be credited after three years via Direct Benefit Transfer (DBT).
Documents Required
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Identity proof (Aadhaar, Election ID)
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PAN card
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Passport-sized photo
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Educational qualification proof
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Age proof
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Caste/community certificate
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Residence proof
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Certificate for Ex-Serviceman, Differently-abled, Transgender
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Bank account details
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Land ownership or lease documents
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Machinery invoice and first sale invoice
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Proof of EPF contributions (if applicable)
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Tax receipts and NOC
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Any other supporting documents
Frequently Asked Questions (FAQs)
Q: What is the maximum project cost for the manufacturing sector?
A: The maximum project cost for the manufacturing sector is ₹15 lakhs.
Q: How much is the promoter’s contribution required for general and special categories?
A: For the general category, the promoter’s contribution is 10% of the project cost, and for special categories (SC/ST/OBC/MBC/Women/Physically Challenged/Ex-Servicemen/Transgender), it is 5%.
Q: Is the EDP training compulsory?
A: Yes, EDP training for two days is mandatory for all applicants under the scheme.
Q: What is the rate of interest charged under this scheme?
A: The interest rate is the normal bank rate applicable to the loan.
Q: How is the subsidy amount disbursed?
A: The subsidy of 25% of the project cost (up to ₹2.5 lakh) is disbursed three years after the first disbursement by the bank.
Q: Can an applicant apply if they are part of a partnership concern?
A: Yes, partnership concerns are eligible to apply under the MEGP scheme.