Govt gives additional budget
Jammu, Apr 13: In order to cater to the soaring unemployment in Jammu & Kashmir, the government has announced some promising amendments to the guidelines of its two flagship entrepreneurship development schemes namely Seed Capital Fund Scheme (SCFS) and Youth start-Up Loan Scheme (YSLS). The two schemes are being implemented by the Jammu and Kashmir Entrepreneurship Development Institute.
The JKEDI spokesman in a statement said that the amendments mainly include enhancement of age limit, increase in seed capital/loan amount, the reserved budget allocation for differently/specially abled persons and up-scaling of business units established by the educated youth of the State under these schemes.
According to the government order No. 34-L&E of 2018 dated 12-04-2018 under SCFS, the seed capital equivalent to 35% of the project cost shall be provided to the prospective entrepreneur up to a maximum of Rs. 4.00 lacs for undergraduates, Rs. 5.00 lacs for graduates, Rs.6.50 lacs for postgraduates and Rs.10 lacs for Professional/Technical Graduates. However, for group initiatives, the upper limit shall be relaxable up to sum total of individual entitlements.
The spokesman said the steering Committee shall sanction joint ventures for 03 people, however, in exceptional cases, a joint venture of 05 persons may be considered. This amendment shall apply to both the schemes.
Similarly as per the government order No. 33-L&E of 2018 Dated 12-04-2018, under Youth Start-Up Loan Scheme the projects with an investment up to Rs. 12 lacs for 10+2, Rs. 15.00 lacs for graduates, Rs.18.00 lacs for postgraduates and Rs. 20.00 lacs for Professional/Technical graduates will be considered for financing with 90% project cost as loan component and 10% as a beneficiary contribution.
However, in case of Professional/Technical degree holders, the seed capital /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 postgraduates, 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 differently /specially abled persons, the age group of 18 to 42 years shall be applicable, the spokesman added.
The spokesman in a statement said that the amendments also include 3% of budget allocation to be reserved for differently/specially abled persons both under Seed Capital Fund Scheme and Youth Start-Up Loan Scheme. Furthermore, there shall now be a provision of up-scaling 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 unitholders 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, the spokesman said.