HCM to launch the Skilled Youth Start-up Scheme during the Independence Day Celebrations 2020

Gangtok, August 14: Hon’ble Chief Minister of Sikkim will launch a new subsidy scheme called Skilled Youth Start-up Scheme during the Independence Day Celebrations 2020.

The scheme will be launched under Department of Commerce and Industries to generate equitable entrepreneurial opportunities in rural as well as urban areas of Sikkim, particularly among the educated unemployed youth to become self-employed by setting up of manufacturing/service/business/co-operative/Agriculture and allied enterprises by availing a loan with back-ended financial subsidy assistance @ 50% for Below Poverty Line and @ 35% for rest on financially viable/ bankable projects from the State Government. It is a good opportunity for the educated unemployed youth to take up entrepreneurship in areas like Dairy, Poultry and Piggery, Organic Farming by setting up Greenhouse, manufacturing sectors, Traditional Wood Handicraft & Handloom Industries, Adventure Tourism like Paragliding, Mountain cycling etc. Rural Homestays, IT, Cutting and tailoring, Bakery & Restaurants, Beauty Parlour, Boutique shops, Herbal Products Industry including Nurseries, Paper bags/Paper plates, Bamboo based Industry (Cane & Bamboo), Automobile Workshop Garage/Car spa, Diagnostic Centers, Film related activities and other such viable projects.

The scheme will be implemented by the Department of Commerce & Industries through the District Industries Centres (DICs) for appraisal of the projects, their financial viability and providing assistance for their credit linkage with the financial institutions and line Departments.
Admissible financial assistance of either 50%/35% of the approved bankable project cost in the form of back-ended subsidy will be provided by the Government through the Commerce & Industries Department. The back ended subsidy shall be released by the Commerce & Industries Department to the concerned public sector Banks/ PSU financial institutions upon sanction and disbursement of the project by them and shall be considered for adjusting against the loan repayment after the end of 3 years from the date of loan disbursement by the bank. The bank loan subject to the levy of interest as governed by the concerned bank norm. Back ended subsidy will remain in the bank in fixed deposit in the name of the beneficiary.

The eligibility criteria and other eligibility conditions may be referred to in the guidelines, which may be obtained in email or in whatsapp for reference.

Contribution of the beneficiary should be 5% of the project cost, subsidy at the rate of either 50% or 35% of the bank sanctioned project cost will be sanctioned by the Department and transferred online to the banks as a back-ended contribution under the Scheme.

After the selection of beneficiaries, 05 days Entrepreneur Development training Programme will be conducted by ASETI or competent Government Training Institute and the EDP training is mandatory before releasing of loans by the Banks.
The application can be obtained from DIC(E/N), Gangtok for applicants pertaining to North & East Sikkim and from DIC(S/W), Jorethang for applicants pertaining to South & West Sikkim and submit their applications in hard copies along with the Detailed Project Report and other relevant documents addressed to the General Manager, DIC (E/N)/(S/W) at Gangtok and Jorethang respectively.
The Selection Committee under the chairmanship of General Manager, DIC, Gangtok/Jorethang comprising of members from the line department will examine the project for in-principal approval in a slot of 30 applications in one sitting. The Selection Committee will forward the in-principle approved list to Headquarters for information and obtaining the sanction of the subsidy.
The committee headed by Secretary, Commerce and Industries Department will approve the project to be sent to the banks for the sanction of the project, The financing bank will scrutinize the project as per their norms and rules. The eligible Financial Institutions for extending loan under the Scheme are all Nationalized Banks, Private Sector Banks, State Co-operative banks and State Bank of Sikkim.

Repayment of loan amount along with interest obtained from the bank shall be the sole responsibility of the applicant as per the terms and conditions of the bank.
The physical verification will be conducted by the concern DIC and committee headed by Director, MSME. The progress of the Scheme will be reviewed and monitored by the Director, MSME, C&I Department and his team on a quarterly basis.
The scheme will be launched by Hon’ble Chief Minister of Sikkim on 15.08.2020 during the Independence day celebration, the applicant can obtain the application w.e.f 20.08.20.

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