Mukhyamantri Yuva Swarozgar Yojana from April 1
Bhopal: For assisting youths of Madhya Pradesh to start their own industries and businesses, Mukhyamantri Yuva Swarozgar Yojana is being implemented from April 1. The scheme was announced by Chief Minister Shri Shivraj Singh Chouhan at Yuva Panchayat recently. Under the scheme, time-limit of one month has been fixed for disposal of loan cases by banks.
The scheme will be implemented by Panchayats & Rural Development Department in rural areas and Commerce, Industries & Employment Department in urban areas. Its object is to provide loans through banks to youths to set up their own industries, services or business. Beneficiaries will be given margin money and loan subsidy. Under the scheme, there is no income bar. Beneficiaries will continue to be benefited as per prescribed eligibility under various schemes. Under Mukhyamantri Yuva Swarozgar Yojana, youths will be provided facilities like payment of guarantee fees and loan subsidy.
Eligbility: An applicant must be domicile of Madhya Pradesh, having passed class X and between 18 and 35 years of age as on date of application. Exemption of 5 years in the upper age limit will be given to applicants belonging to SC, ST, OBC, women and disabled persons. Under Loan Guarantee Fund, facility to reimburse loan guarantee will be given only for industries and service sectors and not for business. Applicant must not be defaulter of any nationalised bank/financial institution/cooperative bank. Persons already availing assistance under any other government schemes will not be eligible for this scheme. Assistance will be given only for one industry/service/business.
Priority: Applicants having passed ITI, diploma, engineering and possessing modular employable skills certificate will be given priority. Besides, priority will also be given to applicants belonging to SC, ST, OBC, women and disabled persons as well as the beneficiaries trained under Entrepreneurship Development Programme.
Financial assistance: Two categories have been prescribed for financial assistance. Under the first category, assistance upto Rs. 50 thousand will be given while assistance of over Rs. 50 thousand to Rs. 25 lakh will be provided.
In the first category, margin money assistance will be 20 percent (maximum Rs. 10 thousand). On project cost, 5 percent loan subsidy will be given for 5 years (maximum Rs. 2000). Maximum Rs. 500 guarantee fees at the rate of 1 percent and maximum Rs. 1000 guarantee service fees will be given at the rate of 0.5 percent (for 4 years).
In the second category, 5 percent loan subsidy on project cost and working capital will be payable to beneficiaries. Maximum guarantee fee at the rate of 1 to 1.50 percent upto maximum Rs. 37 thousand 500 and guarantee service fee (for 4 years) upto maximum 75 thousand will be given at the rate of 0.5 percent to 0.75 percent.
Application process: Applicants will submit their applications in prescribed proforma with affidavit to District Business & Industry Centre/Janpad Panchayat. Applicants will be intimated to complete their incomplete applications if necessary. Applicants will also have to submit project report of proposed activities along with application.
Disposal of applications: The applications and project reports received by District Business & Industry Centre and Janpad Panchayat will be sent to a task force committee constituted for the scheme. Following approval, cases with recommendations will be sent to banks. Guarantee for industries and service entrepreneurships is being given under Loan Guarantee Fund Scheme. Therefore, banks will not ask for any collateral security from applicants. Banks will dispose of cases within 30 days. If intimation is not received from banks within 30 days, information about pending cases will be put forth before district-level review committee.
District-level review committee: Headed by district collector, a district-level review committee will monitor cases constantly for smooth implementation of the scheme. It will review pending cases, establishment of aided enterprises, problems of entrepreneurs and other issues.
Training: Following loan sanction under the scheme, an entrepreneur will have to undergo entrepreneurship development training for 3 to 10 days. The applicants already trained under Entrepreneurship Development Programme need not undergo this training.
Interest rate and repayment: Banks will charge loan interest from entrepreneurs at simple rates. Maximum period of initial moratorium will be 6 months. After initial moratorium, loan will have to be repaid between 3 to 7 years.
Ceremonious launch: Directives have been issued to divisional commissioners and district collectors to launch Mukhyamantri Yuva Swarozgar Yojana with ceremoniously. The scheme will be launched in every district from April 8 to 15, 2013. In-charge minister of district, CEOs of Zila and Janpad Panchayats, General Manager of District Business & Industry Centre, managers of district’s lead banks, representatives of all banks and other concerning officers will be present at the function.