Migrants Employment Generation Programme is a state-level scheme of Tamil Nadu government for Non-Resident Tamils who returned to the state after losing jobs abroad during the Covid-19 pandemic. It offers loans and a capital subsidy to help returnees start their own micro-enterprises and become entrepreneurs. As of August 2026, the scheme is listed on the official MSME portal of Tamil Nadu and online registration for eligible candidates is open.
This scheme was launched after the pandemic caused huge job losses abroad and forced many skilled workers to return home. It helps these returnees turn their work experience into small business ventures. Commissionerate of Industries and Commerce runs the scheme at the state level, while District Industries Centres handle the ground-level work in each district.
Main aim of the scheme is to create self-employment in manufacturing, service and trading sectors, give income support to returning migrants, and provide easy access to collateral-free loans under Credit Guarantee Trust for Micro, Small Enterprises.
Migrants Employment Generation Programme - Details
Selected applicants get a loan from a commercial bank along with a capital subsidy on the project cost. They can set up a manufacturing unit, a service unit or a trading unit based on the experience gained while working abroad. The capital subsidy is 25% of the project cost, up to a maximum of ₹2.50 lakh.
Project cost limits are fixed for each sector. The subsidy helps lower the initial money burden for new business owners, and the remaining amount is paid through the bank loan.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Migrants Employment Generation Programme |
| Level | State |
| State | Tamil Nadu |
| Category | Business and Entrepreneurship |
| Eligible People | Non-Resident Tamils who returned due to Covid-19 |
| Main Department | Micro, Small and Medium Enterprises Department |
| Department Running the Scheme | Commissionerate of Industries and Commerce, Government of Tamil Nadu |
| Subsidy | 25% of project cost, up to ₹2.50 lakh |
| Application Mode | Online |
| Official Website | msmeonline.tn.gov.in/megp |
Benefits
MEGP provides a loan-linked capital subsidy of 25% on the project cost, up to ₹2.50 lakh. This amount helps reduce the cost of setting up the unit, and the rest of the money is arranged through a commercial bank loan.
| Sector Type | Maximum Project Cost |
|---|---|
| Manufacturing | ₹15.00 lakh |
| Service | ₹5.00 lakh |
| Business / Trading | ₹5.00 lakh |
Eligibility
Applicants should meet these conditions to get the benefit:
- Applicant should have returned to Tamil Nadu on or after 01-01-2020 after losing the job abroad due to Covid-19 pandemic.
- Age should be between 18 and 45 years. For special categories like Women, SC/ST, Minorities and Transgender, the age limit is relaxed up to 55 years.
- Applicant should have passed at least 8th standard.
- Total family income should be below ₹5.00 lakh per year.
- Promoter contribution of 10% of the project cost is required for General category and 5% for Special category.
Application Process
Application for MEGP is submitted online through the official MSME portal of Tamil Nadu. Follow these steps:
STEP 1 - Visit the official website at MSME Online Tamil Nadu MEGP page and click on Apply Online, then select New Application.
STEP 2 - Register with basic details such as name, Aadhaar number and mobile number.
STEP 3 - Log in to the account, fill in the application form and upload the required documents.
STEP 4 - After submission, the District Industries Centre checks the application and the local Task Force Committee reviews it.
STEP 5 - Shortlisted candidates attend a required two-day Entrepreneur Development Programme training and then coordinate with the bank for loan and subsidy payment.
Documents
Keep these documents ready while filling the application:
- Copy of Voter ID card or Aadhaar card for identity proof
- Copy of PAN card
- Recent passport size photographs
- Educational qualification certificates
- Proof of age
- Caste or community certificate, if applicable
- Residence proof
- Valid certificate for special categories like Ex-servicemen, Transgender or Differently abled
- Active bank account details
References
Official Website of Migrants Employment Generation Programme
MEGP Page on Non-Resident Tamils Welfare Portal
FAQ's
What is the upper age limit for special category?
The upper age limit for special category, including women and minorities, is 55 years.
Are land and building costs included in the project cost?
No, the cost of land and building is not included while calculating the project cost.
Is the Entrepreneur Development Programme training required?
Yes, completing the two-day training given by the Entrepreneur Development Institute is mandatory for all selected beneficiaries.
Is any collateral required for the loan?
No. The loan is collateral-free under Credit Guarantee Trust for Micro, Small Enterprises.
What happens to the subsidy after three years?
The subsidy is kept in a Term Deposit Receipt for three years. After this period, it is credited to the loan account to reduce the liability.