MSME Skill Training and Employment Scheme - Tamil Nadu
The “MSME Skill Training & Employment Scheme” is implemented by the Government of Tamil Nadu, through the Department of Micro, Small & Medium Enterprises (MSME) / Industries Department under the state’s incentive framework. It was introduced to enable existing micro and small enterprises to meet their requirement of skilled manpower by providing on-job training to unemployed youth and facilitating their employment within the enterprise. The purpose is to reduce your recruitment/training burden and help you build a skilled workforce, while also creating employment opportunities. The scheme benefits your business by linking you to trained manpower and assisting in training costs.
Key Features
- On-job training of unemployed youth by MSME units themselves: Under this scheme, your enterprise as an MSME can select unemployed youth (as per age and qualification criteria) and train them on-the-job within your unit. This means you as employer provide real‐work exposure rather than off-site theory training. This feature allows your enterprise to mould the trainee to your actual work requirements.
- Monthly stipend paid to trainees, part reimbursed by government: You will pay a monthly stipend to each trainee during the training period (for example ₹5,000 per month for up to six months). A portion of this stipend (for example ₹2,000 per month) is reimbursed by the Tamil Nadu government after the trainee has completed the training period. This reduces your cost of training and incentivises you to engage fresh youth.
- Trainees may be absorbed into employment by the enterprise after training: At the end of the training period, your enterprise has the option to absorb the trained person into employment. This can enable you to recruit already-trained manpower familiar with your business, reducing recruitment risk.
- Enterprises eligible can claim reimbursement of stipend for defined period: As an eligible MSME unit, you will claim reimbursement of the portion of stipend paid (according to scheme rules). The reimbursement is subject to conditions (training period, documentation) and must be applied for through the correct process.
- Focus on manufacturing/service enterprises in Tamil Nadu and youth age criteria: The scheme is applicable within Tamil Nadu and targets youth (unemployed) as trainees. It is implemented via your enterprise in coordination with the MSME department. You must ensure eligible enterprise status and follow age/qualification norms for trainees.
Financial Assistance
Eligibility Criteria
Who can apply:
- MSME units registered and operating in Tamil Nadu willing to provide on-job training to unemployed youth.
- Youth candidates: unemployed individuals in Tamil Nadu who are selected by the MSME units for training under the scheme.
- The training must be for a defined period (up to six months) under the scheme guidelines.
Who cannot apply:
- Enterprises outside Tamil Nadu or not registered as MSMEs in the state.
- Youth candidates who are already employed or who do not meet the scheme-specified age or unemployment criteria (if specified in detailed guidelines).
- MSME units that do not comply with scheme requirements (for example, not providing training as per approved schedule or failing to maintain documentation).
- Training undertaken beyond the allowed duration or without Government sanction may not be eligible.
Documents Required
- MSME registration certificate (UDYAM or state MSME registration) of the unit.
- Unit’s address proof and operational status in Tamil Nadu.
- Training plan: number of youth to be trained, duration of training, stipend proposed.
- List of trainee candidates with proof of unemployment/residence in Tamil Nadu (if required).
- Agreement/undertaking by the MSME unit to provide training as per scheme guidelines.
- Bank details of the MSME unit for stipend reimbursement.
- After completion: certificate of training completion, attendance record, proof of stipend paid to trainees (if required for claim).
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: MSME units preferring a hands-off approach and ensuring correct compliance.
Option 2: Government Portal / Online Application
- Visit the official Tamil Nadu MSME scheme portal or the M-TIPB page listing the “Skill Training & Employment Scheme”.
- MSME unit logs in or registers with the portal (if required) and selects the scheme application.
- Provide details of the unit, proposed number of trainees, training schedule and stipend budget.
- Upload requisite documents (MSME registration, unit details, training plan, youth candidature list, etc).
- Submit application for approval; once approved by the nodal agency, begin training and after completion submit claims for reimbursement of ₹2,000/month per trainee.
Option 3: District-level Submission
- Visit your local District Industries Centre (DIC) or regional office of the Industries/ MSME department.
- Obtain the physical application form for the Skill Training & Employment Scheme.
- Fill in unit and trainee details, attach documents, and submit to DIC for sanction.
- After completion of training, follow up for reimbursement of the stipend support from the state agency.
Power Combos with The Scheme
