Enhances seed money, age limit; includes special provision for disabled, upscaling of projects
State government has made some amendments to the guidelines of state’s two startup schemes, Seed Capital Fund Scheme (SCFS) and Youth Startup Loan Scheme (YSLS) for the unemployed youth run by the Jammu and Kashmir Entrepreneurship Development Institute (JKEDI).
The amendments include enhancement of age limit, increase in seed capital and loan amount, reserved budget allocation for disabled persons and upscaling of business units established by the educated youth of the state under these schemes.
According to the government order under No. 34-L&E of 2018 issued on April 12 under SCFS, the seed capital equivalent to 35 percent of the project cost shall be provided to the prospective entrepreneur upto a maximum of Rs 4 lakh for undergraduates, Rs 5 lakh for graduates, Rs 6.50 lakh for postgraduates and Rs 10 lakh for professional and technical graduates. However, for group initiatives the upper limit shall be relaxable upto sum total of individual entitlements.
“The steering committee shall sanction joint ventures for three people, however, in exceptional cases a joint venture of five persons may be considered. This amendment shall apply to both the schemes,” says the order.
Similarly as per the other government order (No 33-L&E of 2018) issued on Wednesday, April 12 under Youth Start Up Loan Scheme the projects with an investment upto Rs 12 lakh for 10+2, Rs 15 lakh for graduates, Rs 18 lakh for postgraduates and Rs 20 lakh for professional and technical graduates will be considered for financing with 90 percent project cost as loan component and 10 percent as beneficiary contribution.
However, in case of professional and technical degree holders, the seed capital and loan component shall be available only if their proposed enterprise is related to their qualification. Otherwise they shall be treated at par with other graduates or post graduates, as the case may be. As per the revised guidelines a state subject in the age group of 18 to 40 years having a qualification of 10+2 or above who is unemployed can avail the benefits under these schemes. For disabled persons, the age group of 18 to 42 years shall be applicable.
The amendments also include 3 percent of budget allocation to be reserved for disabled persons both under SCFS and SYSLS.
There shall now be a provision of upscaling of established business units as ‘Phase-II’ of the project. This will be done only after a proper request is made by the concerned entrepreneur and duly considered and approved by the steering committee. Also the amount of interest to be charged by the J&K Bank will be the same as applicable in the Phase-I. Such unit holders who have established their units under Youth Start-Up Loan Scheme, and intend to upscale and diversify their units shall be provided credit facility by the J&K Bank by following the same procedure as in vogue for fresh cases, without any provision for seed money.
Seed Capital Fund Scheme and Youth Start-Up Loan Scheme are aimed to motivate, train and facilitate educated young men and women to take up entrepreneurship as a career option instead of hankering after the government jobs.