Start-up grant up in Sikkim

RAJEEV RAVIDAS, TT, Gangtok: The Sikkim government has made some modifications in the Chief Minister's Start-up Scheme by fixing a uniform rate of 35 per cent as front ending financial assistance against the twin rates of 25 and 35 per cent and relaxing the upper age limit for the beneficiaries from 40 to 45 years.

The move, many believe, is aimed at consolidating the support base of the ruling Sikkim Democratic Party before the state goes to the polls in the middle of next year.

Another alteration made in the scheme, which is aimed at providing an impetus to the unemployed youth, including school dropouts, to develop new entrepreneurial ventures and self-employment opportunities, is that even private and cooperative banks have been brought under its loop.

Earlier, only public sector banks and financial institutions were allowed to finance the scheme. Under the scheme, a holder of the certificate of identify of Sikkim who is unemployed and has studied up to Class V and above is entitled to apply for loan for new business ventures involving a total investment of not more than Rs 20 lakh. Thirty-five per cent of the total project cost is borne by the government as non-refundable assistance.

Over 1000 people have already applied for loan under the scheme, which was launched in August last year. "About 450 of over 1,000 proposals have already been approved. Cheques have been issued to 410 beneficiaries, and 270 of them have already started operation," said a senior official of the state commerce and industries department.

The scheme covers any new business venture or selfemployment project not involving the use of tobacco and plastics, and include tourist taxis and beauty parlours. "Once the proposal of the beneficiary is approved, it is send to the bank for financing. On the approval of the bank on its own terms, the department issues a cheque amounting to 35 per cent of the project cost as grant or financial assistance," said the official.