Seed money, age-limit increased; 3% of budget allocation reserved for specially-abled
JAMMU: 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 amendments mainly include enhancement of age limit, increase in seed capital/loan amount, 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, an official release issued on Friday read.
According to the Govt 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 upto a maximum of Rs 4.00 lacs for undergraduates, Rs 5.00 lacs for graduates, Rs6.50 lacs for postgraduates and Rs10 lacs for Professional/Technical graduates. However, for group initiatives the upper limit shall be relaxable upto sum total of individual entitlements, it read.
“The steering committee shall sanction joint ventures for 3 people, however, in exceptional cases a joint venture of 5 persons may be considered. This amendment shall apply to both the schemes,” it further read.
Similarly, as per the Govt Order No. 33-L&E of 2018 Dated 12-04-2018, under Youth Start Up Loan Scheme the projects with an investment upto Rs 12 lacs for 10+2, Rs 15 lacs for graduates, Rs.18 lacs for postgraduates and Rs 20 lacs for professional/technical graduates will be considered for financing with 90% project cost as loan component and 10% as beneficiary contribution, the handout read.
“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 post graduates, as the case may be,” it read.
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 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,” read the handout.
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.
The handout further read that 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 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 government jobs, it added.