Worry over Sikkim cash for start-up

RAJEEV RAVIDAS, TT, Gangtok: Sikkim chief minister Pawan Chamling on Friday hinted at being unhappy with the use of the fund provided under the Chief Minister's Start-up Scheme (CMSS) to buy luxury commercial cars, instead of starting other ventures like poultry farms, dairy farms and other agrobased businesses.

Chamling said the people must understand the real purpose of the start-up scheme in order to make best use of it. "People are only buying cars, big cars that cost Rs 20 lakh. The cars will have to give you returns so that you can repay the loan…there is no risk in starting poultry, dairy and agro-based businesses," he exhorted.

Even though the chief minister did not reveal the figures, it is reliably learnt that out of the 2500-odd CMSS applicants, about 80 per cent of them had applied to buy luxury cars to ferry tourists.

The chief minister said taking up agro-based businesses will also enable the beneficiaries to avail assistance up to 20 per cent of the project cost from National Bank for Agri culture and Rural Develop ment (NABARD) on top of the 35 per cent front ended assis tance provided by the govern ment. "Which means if the cost of the project is Rs 10 lakh the beneficiary will only have to repay Rs 4 lakh to the bank," he said.

The CMSS, which was launched in August 15 las year, envisages providing an impetus to the local unem ployed, including schoo dropouts, aged 45 or below to develop new entrepreneuria ventures and self-employmen opportunities in rural as wel as urban areas of the state as start-ups both in the manufac turing and service sectors.

The scheme aims to fi nance 35 per cent of the projec cost as front ended assistance for financially viable ventures not exceeding Rs 20 lakh. The beneficiaries will have to arrange the remaining portion of the cost from the banks by way of loans.

Chamling said apart from agro-based businesses, people can also start homestays and set up packaging and value ad dition units for organic pro duce under the scheme.