:: Welcome to SLBC J&K ::
 
 
   
  Government Sponsored Schemes  
 
 

Over the years the unemployment problem particularly for educated youth has acquired alarming dimensions. With the regular annual incremental increase thousands of unemployed educated youth enter into the growing list of the unemployed, largely due to the economic distress and mismatch, the problem is going to be one of the biggest challenge.

The task of overcoming the unemployment problem could only be resolved to a considerable extent by providing jobs to the unemployed educated youth outside the Govt., departments and by promoting the self-employment ventures and thus ameliorating that lot of job seekers.

Like all other states the state of J & K has a high rate of unemployment particularly among the educated youth.  Almost 6 lakh people are unemployed in the State. The problem has been further accentuated due to the fact that avenues for private employment are restricted to almost nil. This causes a strain on the resources of the State and hampers developmental activities. With a view to generate a lasting solution and overcoming the problem of educated unemployed youth various schemes to provide fruitful self-employment opportunities, especially to the educated unemployed youth, were devised and launched by both the governments at the center and the State.


Common Employment Schemes in J&K State
 

 

  Swaranjayanti Gram Swarozgar Yojana (SGSY)
 
SALIENT FEATURES  
  • The Scheme was launched on 1st April 1999 throughout the country
  • The objective of SGSY is to bring the assisted poor families (Swarojgaris) above the poverty line over a period of three years by providing them income generating assets through a mix of bank credit and government subsidy
  • It should be ensured that the family net income of the Swarozgari is Rs.2000 per month so as to bring him above poverty line
  • The funds for the Scheme are to be provided by the Central and the State Governments in the Ratio of 75:25 respectively
  • For non SC/ST the subsidy will be uniform @ 30% of the project cost subject to a maximum of Rs.7500/-, while as for the SC/ST it will be 50% subject to a maximum of Rs.10000. For groups of Swarozgaris (SHGs) the subsidy portion will be 50% of the project cost subject to a maximum of Rs. 1.25 lacs or Rs. 10000 per member in the group subject to the above ceiling. The subsidy will be back ended.
  • SC/STs to account for at least 50% of Swarozgaries, 40% for women (mutually exclusive), 3% for disabled
  • In establishing the micro enterprises under the scheme, emphasis is on the cluster approach. For this purpose 4 to 5 key activities will be identified for each block with the approval of Panchayat samities, DRDA/ZP etc. The activity selected will be based on potentials available in the block
  • For each key activity, a project approach will be adopted and project reports will be prepared for key activities by involving banks and other financial institutions so as to avoid delays in sanctioning of loans and ensure adequacy of financing
  • The Banks have a proactive role in this scheme. They have to involve themselves in the planning and preparation of projects, identification of activity cluster, infrastructure planning and capacity building, choice of activities of SHGs, selection of individual swarozgaris, pre-sanction appraisal and post disbursement follow-up. The DRDA has to assist the banks in recovery of loans granted under the scheme
  • The loan application forms under the scheme should be disposed off within the prescribed time limit of 15 days.

Implementation of the Scheme of SGSY Year wise Target and Achievements
 

Year

Target

Achievement

%age of Ach.

 

A/C

Amt.(lacs)

A/C

Amt.(lacs)

(Financial)

2001-02

6571

2776.82

4283

1584.00

57

2002-03

8663

4094.86

4417

1870.12

46

2003-04

6487

3606.20

4241

1970.39

55

2004-05

12172

6173.95

5572

2568.86

42

2005-06

8099

4348.72

5092

2350.09

54

2006-07

8185

4304.15

4924

2339.68

54

2007-08

9945

5043.97

6061

2873.24

57

2008-09

11342

5573.13

5913

2807.23

50

2009-10

10992

5974.15

6983

3358.48

56

2010-11

14323

7600.45

6244

3126.17

41

2011-12

7420

3710.00

8063

4002.81

108

2012-13 12322 6700.90 6026 3103.47 46
2013-14 12983 6862.05 2423 1435.08 21
Top    
  Jammu & Kashmir Self Employment Scheme (JKSES)
 
SALIENT
FEATURES
 
  • The main objective under these SES is to address unemployment   problem
  • The SES aims at establishing large number of small units
  • The entrepreneurs may be individuals or joint ventures/Groups
  • The Project Reports is prepared in respect of viable schemes
  • The effort under SES is to cover maximum number of educated unemployed people
  • These schemes are credit cum subsidy programmes envisage greater involvement of Banks
  • Those who will be sanctioned loans will be given necessary training whereever necessary.

ELIGIBILITY
A candidate shall qualify for assistance if he/she fulfills the following criteria;
  • He/she is Middle Pass.  However, no educational qualification shall be insisted upon for candidates having qualified training courses of not less than one academic year duration from a Government institution .
  • He/she belongs to the State of J&K residing in the District where from applied for loan for at least 3 years.
  •  The candidate’s age is between 18 – 40 years for general categories with 5 years relaxation for women and for persons belonging to the categories of SC/ST/Ex-Servicemen/Physically Handicapped.
  • The candidate is unemployed and has not drawn any loan from any bank/financial institutions for setting up of a venture of his/her own. 

PROJECT
COST
  • An activity covered under Retail Trade shall qualify for assistance provided the total cost of the scheme does not exceed Rs.2.00 lakhs.
  • An activity covered under Industries/Services etc. shall qualify for assistance provided the total cost of the scheme does not exceed Rs.3.00 lakhs
  • In cased of Joint Ventures maximum limit of the cost of the Scheme shall be Rs.10.00 lakhs (Joint Venture consisting of at least 2 candidates). 

GOVERNMENT ASSISTANCE: Incentives
  • Government through Employment Department will contribute Margin Money of 15% of the cost of the Scheme repayable after bank loan is cleared by the entrepreneur. This will be released after bank sanctions the loan and the entrepreneur executes the Margin Money Bond with the Department;
  • Government through Employment Department shall provide Interest Subsidy for two years on tapering basis on the bank loan drawn by the entrepreneur as under: 
    • During first six months 100%
    • One year after 1st six months 75%
    • Next Six months 50% This will be released as and when the claim is received from the bank and shall not be paid on defaulted amount, which will be responsibility of the entrepreneur
  • The Government through Employment Department will provide 5% capital subsidy of the project cost subject to the maximum of Rs.7500/-
  • Promoters contribution shall be 5% of the project cost plus the amount of the total shortfall after the deduction of the amount of subsidy
  • No collateral for projects upto Rs.1.50 lakhs each. Exemption from collateral in case of a Joint venture shall be limited to Rs.3.00 lakhs
  • Training free of cost where ever it is felt necessary.
  • Bank loan 75% of the project cost.
  • The Employment Department shall provide suggestive project profiles.

Implementation of the Scheme of JKSES Year wise Target and Achievements
 

Year

Target

Achievement

%age of Ach.

 

A/C

Amt.(lacs)

A/C

Amt.(lacs)

(Financial)

2001-02

9829

9882.73

2245

2683.64

27

2002-03

8871

 13507.88

2297

2992.27

22

2003-04

7980

10278.45

2028

2786.55

27

2004-05

6215

8242.19

2174

3142.99

38

2005-06

5363

7352.00

2004

3248.90

44

2006-07

5476

7772.23

2180

3828.78

49

2007-08

5563

8475.22

2663

4839.87

57

2008-09

6363

10467.31

2693

5064.03

48

2009-10

5860

9904.91

2927

6344.27

64

2010-11

6912

13384.35

3185

8233.13

62

2011-12

6675

11883.20

4408

11285.39

95

2012-13 9234 20321.30 4797 12731.29 63
2013-14 10514 23450.05 3991 10905.06 47

Top    
Swaran Jayanti  Shahri Rozgar Yojana (SJSRY)
 
SALIENT FEATURES  
  • SJSRY was launched by GOI in the year 1997. It envisages assistance to individual urban poor beneficiaries to provide gainful employment to unemployed and under employed youth through encouraging setting up of self-employment ventures or provision of wage employment. It has been introduced in place of SUME (Scheme for Urban Micro Enterprises) to have wider coverage.

  • In the case of SJSRY District Urban Development Agency/Notified Area Committee is the Nodal Agency. The Scheme covers all urban towns including semi urban towns. Its target group is urban poor living below the poverty line and residing in the Town for at least 3 years. Person educated beyond IX standard is not eligible. Two or more persons can join together in a partnership under the scheme.

  • Total Project cost should be Rs.50000/- in case of individuals and in case of partnerships higher cost can be provided with the ceiling of Rs.50000/- per person. Margin money requirement is 5% of the project cost. Subsidy is available @ 15% of project cost subject to a maximum of Rs.7500/-. Similarly in partnerships ceiling of maximum subsidy is Rs.7500/- per person.


Implementation of the Scheme of SJSRY Year wise Target and Achievements
 

Year

Target

Achievement

%age of Ach.

 

A/C

Amt.(lacs)

A/C

Amt.(lacs)

(Financial)

2001-02

5451

2148.44

1338

563.65

26

2002-03

4346

1807.90

1394

598.36

33

2003-04

3788

1852.07

1160

518.85

28

2004-05

3355

1682.00

1215

577.45

34

2005-06

3246

1644.72

1184

541.69

33

2006-07

3210

2028.60

816

452.43

22

2007-08

3699

2600.40

1332

963.69

37

2008-09

2211

1477.20

772

466.33

32

2009-10

2336

1211.60

775

430.31

36

2010-11

1515

1000.28

431

353.13

35

2011-12

722

1040.00

569

790.69

76

2012-13 942 1592.50 633 993.51 62
2013-14 1125 1125.00 825 1148.89 102
Top    
SC/ ST/ OBC
 
SALIENT FEATURES  
  • The J&K SC/ST/OBC development Corporation limited has its offices at District level, which sponsor applications to its target groups and arranges credit support to them through various financial institutions. Capital subsidy @ 50% for SC, ST and 33% for OBC beneficiaries with the ceiling of Rs.6000/- and Rs.5000/- respectively is made available by the Corporation. All activities financed under IRDP, SGSY are eligible under this plan also.


Implementation of the Scheme of SC/ST/OBC Year wise Target and Achievements
 

Year

Target

Achievement

%age of Ach.

 

A/C

Amt.(lacs)

A/C

Amt.(lacs)

(Financial)

2001-02

3896

972.91

636

143.16

15

2002-03

3385

858.52

585

160.29

19

2003-04

2789

747.40

550

149.28

20

2004-05

2620

773.28

943

263.06

34

2005-06

2646

800.00

883

245.88

31

2006-07

2693

817.30

682

208.65

26

2007-08

2817

758.96

558

204.48

27

2008-09

2912

928.67

665

238.29

26

2009-10

3134

1270.70

609

241.87

19

2010-11

3265

1222.50

431

353.13

35

2011-12

2989

1436.50

441

243.62

17

2012-13 2648 1709.00 479 267.28 16
2013-14 2776 1240.94 677 420.01 34
Top    
Handicrafts Sector
 
SALIENT FEATURES  
  • Shawls and carpet making, Crewel and Chain stitch embroidery, Gubba making, papier machie, Kanni Shawl, Tapestry, Namda embroidery, zari embroidery, Copperware making, wood carving, willow–wicker work, Fur and Leather work, Silver ware, meena kari, Clay moulding, Thanka/Frasco painting, Pholkari embroidery, Wheatstraw, Chikriwood, Shawl embroidery, basooli painting, Nara pranda making, Calico printing, Lathe-Cum-Lackure work, Bamboo work, Chamba embroidery


Implementation of the Scheme of Handicrafts Year wise Target and Achievements
 

Year

Target

Achievement

 

A/C

Amt.(lacs)

A/C

Amt.(lacs)

%age

2002-03

6106

2986.03

731

278.40

9

2003-04

3169

1587.72

576

231.47

15

2004-05

9759

4181.62

775

313.69

8

2005-06

7464

2937.47

599

282.80

23

2006-07

3090

1498.20

526

271.33

18

2007-08

3471

1575.63

817

6432.85

27

2008-09

3516

1928.72

931

531.37

28

2009-10

3514

2097.09

912

486.37

23

2010-11

3435

1781.60

720

479.40

27

2011-12

4311

2526.45

1541

942.51

37

2012-13 4519 3691.01 8260 6412.75 174
2013-14 4867 4799.41 5892 5252.36 109

Top    
Handlooms Sector
 
SALIENT FEATURES  
  • Pashmina weaving, Pashmina spinning, Raffal weaving, cotton weaving, Kani shawl weaving, cutting and tailoring


Implementation of the Scheme of Handlooms Year- wise Target and Achievements
 

Year

Target

Achievement

 

A/C

Amt.(lacs)

A/C

Amt.(lacs)

%age

2002-03

4655

7131.81

292

120.93

2

2003-04

2342

1532.24

200

78.91

5

2004-05

1861

1295.45

194

90.08

7

2005-06

1517

1013.24

126

64.23

6

2006-07

1035

691.19

118

60.64

9

2007-08

1102

779.90

200

102.61

13

2008-09

1251

905.30

173

92.44

10

2009-10

937

609.45

256

163.74

27

2010-11

1401

982.14

218

138.59

14

2011-12

1696

1584.46

460

296.30

19

2012-13 2404 2008.86 868 776.17 39
2013-14 3195 3096.78 1648 1375.46 44

Top    
Rain water Harvesting Scheme for SC/ ST Farmers
 
SALIENT FEATURES  
  • Government of India in budget for the year 2004-05 announced the “Water Harvesting Scheme for SC/ST Farmers"
  • Water harvesting schemes specific to an area or village have been found to be extremely useful in providing protective irrigation to the homesteads/ farmlands of Scheduled caste and scheduled tribe farmers in the varied agro-climatic and hydro geological regimes of India. These farmers are located all over the Country and their homestead/ farmlands are very small compared to the average holding of the rural population In order to provide supplementary irrigation to their farmlands through water harvesting structures, a nation wide water harvesting scheme through construction of rain water storage tanks has been designed as a capital investment subsidy scheme with 50% subsidy and 50% bank credit. A provision of lifting device of upto 2 HP kerosene pumpset has also been made in the scheme along with the required delivery pipe

Top    
Swarozgar Credit Card (SCC)Scheme
 
SALIENT FEATURES  
  • Hon’ble Prime Minister of India in his Independence Day speech on 15th August 2003 announced introduction of a suitable credit card scheme for artisans and other small entrepreneurs. Consequently, NABARD, in consultation with GOI and RBI has formulated a special credit card scheme viz, Swarozgar Credit Card (SCC) Scheme benefiting the rural artisans and other small entrepreneurs. The scheme envisages taking care of the investment and working capital requirement of a wide range of small borrowers especially in the non-farm and services sectors both in rural and urban areas

Objective
  • SCC aims at providing adequate and timely credit i. e.working capital or block capital or both to persons belonging to small artisans, handloom weavers, service sector, fisherman, self- employed persons, rikshaw owners, other micro entrepreneurs etc. from banking system in a flexible, hassle free and cost effective manner. The facility may also include a reasonable component for consumption needs.

  • The scheme is to be implemented by all Commercial banks, RRBs, State Cooperative Banks/ DCCBs/ PACs, SCARDBs/ PCARDBs and scheduled primary Cooperative banks (Urban Cooperative Banks)


Nature
and
Quantum
  • The Credit facility extended under the scheme is in the nature of a composite loan including term loan/ revolving cash credit. The borrower can avail the credit facility as per his/her requirements i. e. either term loan or working capital loan or a combination of both.

  • The normal limit under the scheme is Rs.25000/- per borrower. However, in deserving cases, banks may consider even higher limits. The initial investment in fixed assets and/ or working capital requirement/ recurring expenditure of the borrower are to be taken as the base for fixing the limit. The total limit would have a relationship with the project net earning and the repayment capacity of the borrower.


Top    
SEMFEX
 
SALIENT FEATURES  
  • A good number of armed forces personnel retire every year at a comparative young age. SEMFEX Scheme has been designed for resettlement of such people. The slogan of the scheme is “Arms to Farms”. The Scheme, promoted with the refinance assistance of NABARD provides financial assistance to ex- servicemen for agriculture and allied activities besides setting up of village, cottage, tiny and small scale industries in rural Areas. Soft Loans Assistance towards margin money is available for farm and non-farm activities under the scheme. Ex-servicemen / war widows and disabled personnel are eligible for financial assistance under the scheme provided they are registered with Zilla Sanik Boards and are having no outstanding loans under other schemes. There is no age restriction for availment of loans. Eligible persons desirous of getting assistance have to apply to concerned Zilla Sanik Boards

Top    
Kissan Credit Card (KCC) Scheme
 
SALIENT
FEATURES
 
  • The Hon’ble Union Minister for Finance in his budget Speech for the year 1998-99 has desired that the banks should issue Kissan Credit Cards to farmers on the basis of their land holdings so that the farmers may use them to readily purchase agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs and that NABARD should prepare a model scheme for uniform adoption by the banks. The model scheme is to be implemented by commercial banks, RRBs and cooperative banks (DCCB/PACs.

OBJECTIVES

  • Kissan Credit Card Scheme aims at adequate  and timely support from the banking system to the farmers for their cultivation needs including purchase of inputs in a flexible and cost effective manner

Eligibility
  • The Scheme would primarily cater to the short-term credit requirements of the farmers. Under the Scheme banks may provide Kissan Credit Cards to farmers who are eligible for sanction of production credit of Rs.5000/- and above

Implementation of the Scheme of KCC -Year wise Target and Achievements
 

Year

Target

Achievement

%age of Ach.

 

A/C

Amt. (in Lacs)

A/C

Amt. (in Lacs)

(Financial)

2002-03

30766

3627.07

4393

1718.29

47

2003-04

39170

5613.02

3098

2200.90

39

2004-05

102368

9690.41

5781

2283.37

24

2005-06

113805

10982.57

10223

2356.97

21

2006-07

66799

12047.96

4599

2375.02

20

2007-08

46648

17843.72

3725

2025.13

11

2008-09

34534

10470.10

2734

1606.85

15

2009-10

35005

8647.27

6707

3246.96

38

2010-11

49870

27466.36

8659

3910.31

14

2011-12

12,36,723
(Target being 100% coverage of farmers in J&K State)

1,24,365

10%

2012-13 1284000 664955 346250.00 52
2013-14 1017152 (As per door to door survey conducted by Agriculture Production Department, some farmers families have not opted for KCC) 744470 446117.27 73
Top    
SELF HELP GROUP (SHG)
 
SALIENT FEATURES  
  • In the beginning of 90’s Reserve Bank of India formulated a scheme for financing via Self Help Groups. The aim of the scheme was to channalize funds lending from banks towards the poor sections of society via assistance of voluntary agencies and Self Help Groups (SHGs). SHG constitutes a small, economically homogeneous, affinity group of rural poor voluntarily formed to save and mutually agree to contribute to common fund to be lent to its members as per group decision. Voluntary Agencies include NGOs and other Self-Dependent Groups.

Size
of
Group

  • The ideal size of a SHG is 10-20 members. In a bigger group, members cannot participate actively. Also legally it is required that an informal group should not be of more than 20 members. However, in difficult areas like deserts, hills and areas with scattered and sparse population in case of minor irrigation and physically challenged persons, SHGs may be constituted with a minimum of 5 members. The relaxation in this regard is to be decided by State Level SGSY Committee

Nature
and
Quantum
  • The bank can extend finance to the tune of Rs.15000/- for group. A revolving fund of Rs.10000/- is to be released by DRDA in favour of the group. The banks have to obtain documents for the total amount of Rs.25000/- but the interest has to be calculated on Rs.15000/-only. The banks can release the loan component after receipt of the revolving fund from DRDA.

Implementation of the Scheme of SHG -Year wise Target and Achievements
 

Year

Achievement

 

A/C

Amount

2002-03

75

21.99

2003-04

155

62.74

2004-05

122

58.25

2005-06

267

153.56

2006-07

992

627.63

2007-08

1837

1240.72

2008-09

794

438.34

2009-10

731

500.91

2010-11

606

572.38

 

 

 

 

Total SHGs formed

SHGs Savings linked

SHGs credit linked

Total loans disbursed by banks(Crore)

2011-12

7463

5,991

5,907

37.71

2012-13 8632 7096 6607 45.14
2013-14 10808 9207 7222 51.11
Top    
Artisans Credit Card (ACC) Scheme
SALIENT FEATURES  
  • The Artisan Credit Card Scheme has been devised by Indian banks Association (IBA) to provide hassle free credit facility to artisans. The scheme approved by R.B.I. and the Development Commissioner (Handicrafts) has been adopted by the Banks for implementation.

Objective

  • The scheme aims at providing adequate and timely assistance from the banking institutions to the artisans to meet their credit requirements both investment needs as well as working capital in a flexible and cost effective manner. The scheme would be implemented both in rural and urban areas

Eligibility
  • All artisans involved in production/ manufacturing process (and otherwise eligible for credit facilities for carrying out the proposed activities under any of the existing bank schemes) would be eligible. Preference would be given to artisans registered with Development Commissioner (Handicrafts)

Fixation
of
Credit Limits
 
  • The credit limit should be fixed based on assessment of working capital requirements as well as cost of tools and equipments required for carrying out manufacturing process. The maxim limit sanctioned under the scheme would be Rs.2.00 lacs.  The limit is to be utilized as revolving cash credit and will provide for any number of drawls and repayments within the limit. As the limit sanctioned would normally have a validity of 3 years the need to accommodate incremental working capital requirements may be kept in view.

Margin  
  • Upto Rs.25000                                                              NIL
  • Over Rs.25000 and upto Rs.1.00 lac                               20%
  • Over Rs.1.00 Lac and upto Rs.2.00 Lacs                          25%

Top    
National Equity Fund (NEF) Scheme
 
SALIENT FEATURES  
  • National Equity Fund Scheme was launched by the Director General Resettlement, Ministry of Defense, GOI with the cooperation and assistance of Small Scale Industrial Development Bank of India (SIDBI) to provide resettlement opportunities to defense personnel after their retirement from the armed forces.

  • The scheme is to provide equity type support to entrepreneurs for the setting up of new projects in tiny/ small scale sector for undertaking extension, modernization, technology, up-gradation and diversification by existing tiny SSI and service enterprises and for rehabilitation for viable sick units in SSI sector which fulfill eligibility criteria. The scheme for providing soft loan has been further modified by SIDBI and accordingly banks have decided to implement the scheme.


Eligibility

  • State Financial Corporations, Twin-function Industrial Development Corporations, Scheduled Commercial Banks and select Urban and State Cooperative Banks

Project Cost
  • The project cost (Including margin money for working capital) should not exceed Rs.50 lakh in the case of new projects. In the case of existing units and service enterprises the total outlay including the proposed outlay on expansion/ modernization/technology up gradation/diversification or rehabilitation should not exceed Rs.50 lakh

Promoters Contribution  
  • Minimum 10% of the project cost.

Debt
Equity Ratio
 
  • 65:35 or 1.857:1(Excluding State Investment Subsidy).However, a flexible approach may be followed in case of rehabilitation proposals

Nature
of Assistance
 
  • Equity type assistance in the form of soft loan

Amount
of Assistance
 
  • Amount as may be required to meet the gap in equity as per prescribed debt equity norm after taking into account promoters’ contribution, subject to a maximum of25% of project cost or Rs.10 lakh per project whichever is lower

Terms
of Assistance
 
  • Interest:No interest is charged on the soft loan component except service charges of 5% p.a. of which 1% p.a. to be retained by the PLI and remaining 4% p.a. should be passed on to SIDBI.
  • Repayment Period: 7 years (including moratorium upto 3 years) for soft loan. The repayment period thereof should, however, be co terminus with the repayment period of normal term loan for the project. Whenever borrowers are making repayments/ prepayments of term loan alone, the PLIs may insist on repayment of soft loan and wherever soft loan prepayments are not received, the repayments/ prepayments so received may be proportionately adjusted by the PLIs towards term loan and soft loan. Payments to SIDBI may correspondingly be made.

Soft
Loan Component
 
  • The extent of soft loan assistance will be 25% of the project cost subject to a maximum of Rs.10.00 lacs per project

Security  
  • No security including collaterals is to be insisted upon for the soft loan

Top    
Credit-Cum- Subsidy Scheme for Rural Housing
 
SALIENT FEATURES  
  • There are a large number of households (below poverty line and above it) in the rural areas, who could not be covered under Indira Awaas Yojana, as either they do not fall within the range of eligibility or due to the limits imposed by available budget. On the other hand, due to limited repayment capacity, these rural households cannot take benefit of fully loan-based schemes offered by some of the housing finance institutions. The needs of this large majority can be met through a scheme which is part-credit part-subsidy based. The introduction of part-credit, part subsidy based schemes will be an important step in the direction of redefining the role of the Government from that of a ‘provider’ to a facilitator, as envisaged in the National Housing and Habitat Policy 1998.

TARGET GROUP

  • The target group under the Credit-cum-subsidy Scheme will be rural households having an annual income of upto Rs. 32,000/- only. However, below poverty line rural households shall be given preference. At least a minimum of 60% of the finance allocated under this scheme as subsidy to each state, shall be utilized in financing the construction of houses for the Scheduled Castes, Scheduled tribes and freed bounded labourers.

TARGET AREA

  • The state may independently decide as to whether it desires to implement this scheme through the state or within a few districts/blocks. The target areas that can be taken up under the credit-cum-subsidy scheme shall be solely the rural areas and large towns

UPPER LIMIT
OF CONSTRUCTION ASSISTANCE SUBSIDY/LOAN
 
  • Ceiling of subsidy that can be given under the scheme is Rs.12,500/- per household. The upper limit of construction loan admissible under this scheme will be Rs.50,000/- per household. The State Government is free to identify the agency from which the loan will be sourced and disbursed. This may be from Scheduled Commercial Bank, Housing Finance Institution or the State Government directly.

Margin  
  • Upto Rs.25000                                                              NIL
  • Over Rs.25000 and upto Rs.1.00 lac                               20%
  • Over Rs.1.00 Lac and upto Rs.2.00 Lacs                          25%

Implementation of the Scheme of Rural Housing-Year wise Target and Achievements

Year

Target

Achievement

%age of Ach.

 

A/C

Amt.(lacs)

A/C

Amt.(lacs)

(Financial)

2002-03

785

336.97

140

66.87

20

2003-04

719

288.95

149

59.96

21

2004-05

590

236.25

136

59.85

25

2005-06

481

200.90

94

41.17

20

2006-07

112

52.60

20

9.37

18

2007-08

110

51.60

15

6.87

13

2008-09

100

62.00

14

6.37

10

2009-10

113

52.80

14

6.37

12

Top    
SSI (DIC)
 
SALIENT
FEATURES
 
  • The main objective of setting up District Industries Center was to provide all facilities to the prospective entrepreneurs under the single roof. Government is providing number of facilities in the shape of incentives for setting up the Industrial units and also to develop the Industrial Estate where all infrastructures are available at cheaper cost. The Government is announcing policies from time to time for promotion of Industries and in January 2004 a revised Industrial Policy likely to be extended up to 2015 has been announced. The main attraction of the package of incentives is exemption of Excise Tax/ Sales Tax and 100% subsidy of D.G. sets, which is considered to be the best in the country. The main objective for providing such facility is to minimize the burden of unemployment and for the economic growth of the State.

  • The District Industries Centre besides being single window clearance agency also undertakes to provide technical assistance at whatever stage. The entrepreneurs need technical assistance in the shape of existing techniques of production.

ARRANGEMENTS FOR
IMPARTING TECHNICAL SKILLS/ KNOWLEDGE

  • There are many agencies in the districts, which are imparting training/technical skills and knowledge to rural artisans, cottage and Small Scale Industries. The District Rural Development Agency is imparting training to rural artisans in shoe making, bamboo craft, blanket weaving, handloom etc. at various centers in the district under (TRYSEM)

Implementation of the Scheme of SSI (DIC)-Year wise Target and Achievements
 

Year

Target

Achievement

%age of Ach.

 

A/C

Amt.(lacs)

A/C

Amt.(lacs)

(Financial)

2002-03

1377

3815.95

329

930.01

24

2003-04

1675

3474.03

209

408.91

12

2004-05

1069

2148.56

250

653.70

30

2005-06

1120

2429.55

216

727.32

30

2006-07

932

2362.13

208

883.34

37

2007-08

1188

2948.62

214

868.40

29

2008-09

1229

3816.75

216

684.68

18

2009-10

1188

2948.62

214

868.40

29

Top    
Technology Mission Schemes for  Horticulture
 
SALIENT FEATURES  
  • The activities covered under the Schemes include development marketing infrastructure and strengthening cold storage facilities for promotion of horticulture and floriculture related activities, food processing and value addition, osmotic dehydration units etc. These schemes carry a 30% back ended subsidy available on project cost with maximum of Rs.50000/-. The cost involved for every activity is project based and may vary from individual to individual with one activity

Top    
 
  Command Area Development Schemes  
 
SALIENT FEATURES  
  • Command Area Development programme consists of two schemes namely Land Development Works and Conjuctive use of surface and Ground water, which are Centrally sponsored programmes on cost sharing basis of 50:50. The Command Area Development Programme has been conceived as an integrated programme to orchestrate all the activities crucial for increasing agricultural productivity in Command Areas leading to better utilization of created irrigation potential to optimize the production
  • The small and marginal farmers in command areas covered by projects are brought under various subsidy schemes leading to better utilization of created irrigation potential. Some of the schemes involve subsidy component upto 35% and 25% respectively for marginal and small farmers. As the subsidy schemes are approved schemes issued through water resources Ministry, GOI, they are high priority schemes as far as the Command Area Development activities are concerned.  As per the approved guidelines issued by the GOI the subsidy component is available on loans lifted by beneficiaries from financial institutions.

Top    
 
  Agri. Clinic & Agri. Business Center Scheme (AC-ABC)  
 
SALIENT FEATURES  
  • Ministry of Agriculture in consultation with NABARD and select banks formulated the Agri-Clinics and Agri- Business Centers Scheme to strengthen transfer of technology and provide self-employment opportunities to technically trained persons. He scheme shall also provide supplement source of input supply and services to accelerate the process of technology transfer to agriculture without the dependence of agencies

Objectives
  • The main features of the scheme are to supplement the efforts of Government Extension System. To make available supplementary source of inputs supply and services to needy farmers and to provide gainful employment to agriculture sector. The activities considered for financing under the Agri-Clinics and Agri-Business Centres are as unde
    • Soil & Water quality-cum-inputs testing laboratories (with automatic absorption spectrophometer).
    • Pest surveillance, diagnostic and control services
    • Maintenance, repairs and custom hiring of agriculture implements and machines including various irrigation system (sprinkler and drop)
    • Provision of live stock health cover setting up veterinary dispensation and services including frozen semen banks and liquid nitrogen supply
    • Setting up of information technology kiosks in rural areas for access to various agriculture related portals.

Concept
and
Dispensation
  • Agri-Clinics:These Clinics shall provide expert services and advice to farmers on cropping practices, technology dissemination, crop protection from insects and diseases, market trends and prices of various crops in markets and also clinical services for animal health etc.
  • Agribusiness Centre:These centers shall provide input supply, farm equipment on lease and other services. In order to enhance the viability of the venture the Agriculture Graduates may also take up in agriculture and allied areas along with the Agriclinics/ Agribussiness centers
  • Eligibility:The Scheme shall be open to Agriculture Graduates/Graduates in subjects allies to agriculture like horticulture, animal husbandry, forestry, diary, veterinary, poultry farming and other allied activities.
  • Project Cost and Coverage:The project can be taken up individually, jointly or on –group basis. The outer ceiling for cost of project by individual would be Rs.10.00 lacs and in group Rs.50.00 lacs. The group normally shall be of 5 of which one could be a management graduate with qualification or experience in business development and management. However, for availing refinance under ARF the outer limit of the project cost would be Rs.25.00 lacs subject to ceiling of Rs.15.00 lacs towards refinance availment. Project outlays above Rs.25.00 lacs may be submitted to NABARD for prior sanction
  • Refinance:NABARD shall provide 100% refinance support to Banks. For availing refinance under ARF (Automatic Refinance Facility) the prescribed ceiling has been fixed at Rs.15.00 lacs beyond which the proposal have to be submitted to NABARD under existing procedure.
  • Margin Money:A minimum of25% shall be contributed as margin money by the prospective borrowers.
  • Rate of Interest:The rate of interest shall be applicable as per the existing guidelines
  • Security:As per the norms.
  • Repayment:The loan shall be repaid between 5 years to 10 years depending upon the activity. The repayment period can include a grace period depending upon the nature of activity to maximum period of 2 years.
  • Selection of Borrowers:The selection of borrowers and location of the project can be done in consultation with Agriculture Universities in the area

Top    
 
  Mahila Udyam Nidhi (MUN) Scheme  
 
Objective  
  • The objective of the MUN Scheme is to provide equity type assistance to women entrepreneurs for setting up new projects in tiny/ small scale sector for undertaking expansion, modernization, technology up gradation and diversification by existing tiny, small scale and service enterprises and for rehabilitation of viable sick units in the SSI sector which fulfill the specified eligibility criteria. This scheme is being operated through SFC/Twin-function SIDCs and eligible public and private sector scheduled commercial banks as also urban Co-operative banks (Which are eligible for direct refinance assistance from SIDBI). Assistance under MUN helps the women promoted small scale / tint / service units in strengthening their equity base and thereby improving their capability for term financing by PLIs

Eligibility Criteria
  • New projects in tiny and small-scale sector for manufacture, preservation or processing of goods. Tiny enterprises would include all industrial units and servicing industries (except RTOs) satisfying the investment ceiling.
  • Existing tiny and small-scale industrial units and servicing enterprises (including those which have availed of MUN assistance earlier) undertaking expansion, modernization, diversification and technology up gradation
  • Sick units in the tiny and small-scale sector including servicing enterprises, which are considered potentially viable. The rehabilitation proposals of the sick units should conform to the norms prescribed under SIDBIs Refinance Scheme for Rehabilitation of sick industrial units
  • All industrial and servicing activities (except RTOs) in the SSI sector.
  • Projects which avail of any margin money or seed/special capital assistance under the scheme of Central/State Government, SFCs and other State Level Institutions or Banks (except State Investment Subsidy) are not eligible under the Scheme
  • The unit should be eligible for assistance under the refinance scheme of SIDBI. Sanction of refinance in respect of term loan for the project by SIDBI is a pre-requisite for existing equity type assistance under the MUN Scheme.
  • The total fund requirement of the project in the form of equity assistance under the scheme, term loan and working capital will be provided by a single agency. Central/ State Government subsidy may be retained for meeting the working capital requirement.
  • Projects covered under the Single Window Scheme of SIDBI can also be extended MUN assistance if they satisfy the eligibility criteria under both the schemes. MUN assistance in such cases would, however, be admissible against the cost of foxed assets only (project cost less margin money for working capital) and not against the working capital requirements.

Project Cost
  • The project cost (Including margin money for working capital) should not exceed Rs.10 lakh in the case of new projects. In the case of existing units, while the original investment should not exceed Rs.10 lakh, the outlay on expansion/ modernization/ technology up-gradation/ rehabilitation should also be withinRs.10 lakh per project.

Debt Equity Ratio  
  • 65:35  (Excluding State Subsidy which may be extended for meeting working capital)

Promoters Contribution  
  • 10% of the project cost.

Nature
of Assistance

 
  • Soft loan


Amount
of Assistance
 
  • Upto 25% of project cost subject to a maximum of Rs.2.5 lakh per project.


Terms
of Assistance
 
  • Interest:No interest is charged on the soft loan component except service charges of 1% p.a., which may be retained by the PLIs
  • Repayment Period:7 years (including moratorium upto 3 years) for soft loan. However, repayment period for soft loan would coincide with the term loan component
  • Security:No security including collaterals is to be insisted upon for the soft loan.

Top    
 
  General Credit Card (GCC) Scheme  
 
Scheme  
  • The scheme shall cover general credit needs of bank constituents in rural and semi-urban areas. It shall be classified as priority sector lending. 50% of credit outstanding under GCC upto Rs.25000/- will be eligible for being treated as indirect agricultural financing subject to further review of eligibility criterion
Objective
  • To provide hassle free credit to banks customers based on the assessment of cash flow without insistence on security, purpose or end use of the credit. This is in the nature of revolving credit like overdraft or cash credit without stipulation for end use


Participating banks
  • The scheme may be implemented by all Schedules Commercial Banks and RRBs at any of their branches.


Nature
of
financial accommodation:
Cash withdrawal

  • The credit facility extended under the scheme will be in the nature of revolving credit. The GCC holder will be entitled to draw cash from the specified branch of bank upto the limit sanctioned and in fact this may be the only feasible mechanism in many cases.


Quantum of limit  
  • Banks would have flexibility in fixing the limit on the assessment of income and cash flow of the entire household. However, the total credit facility under GCC for an individual should not exceed Rs.25000/-


Interest rate  
  • Interest rate on the facility may be charged as considered appropriate and reasonable

Flexibility
in use of
credit

 
  • The borrowers would be eligible for availment of the credit facilities provided under GCC as per their requirement without any insistence on security and the purpose.


Top    
 
  Prime Minster's Employment Genration Programme (PMEGP)  
 
SALIENT FEATURES  
  • Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. PMEGP will be a central sector scheme to be administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The Government subsidy under the Scheme will be routed by KVIC through the identified Banks for eventual distribution to the beneficiaries / entrepreneurs in their Bank accounts. The Implementing Agencies, namely KVIC, KVIBs and DICs will associate reputed Non Government Organization (NGOs)/reputed autonomous institutions/Self Help Groups (SHGs)/ National Small Industries Corporation (NSIC) / Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj institutions and other relevant bodies in the implementation of the Scheme, especially in the area of identification of beneficiaries, of area specific viable projects, and providing training in entrepreneurship development.


Objectives
  • To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.

  • To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.

  • To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.

  • To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.


Eligibility Conditions of Beneficiaries:

 
  • Any individual, above 18 years of age
  • There will be no income ceiling for assistance for setting up projects under PMEGP.
  • For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs.5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
  • Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.
  • Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.
  • Institutions registered under Societies Registration Act,1860
  • Production Co-operative Societies, and
  • Charitable Trusts.
  • Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

Bank Finance  
  • The Bank will sanction 90% of the project cost in case of General Category of beneficiary/institution and 95% in case of special category of the beneficiary/institution, and disburse full amount suitably for setting up of the project.

  • 8.2 Bank will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of cash credit. Project can also be financed by the Bank in the form of Composite Loan consisting of Capital Expenditure and Working Capital. The amount of Bank Credit will be ranging between 60-75% of the total project cost after deducting 15-35% of margin money (subsidy) and owner’s contribution of 10% from beneficiaries belonging to general category and 5% from beneficiaries belonging to special categories. This scheme will thus require enhanced allocations and sanction of loans from participating banks. This is expected to be achieved as Reserve Bank of India (RBI) has already issued guidelines to the Public Sector Banks to ensure 20 % year to year growth in credit to MSME Sector. SIDBI is also strengthening its credit operations to micro enterprises so as to cover 50 lakh additional beneficiaries over five years beginning 2006-07, and is recognized as a participating financial institution under PMEGP besides other scheduled/ Commercial Banks.

  • Though Banks will claim Margin Money (subsidy) on the basis of projections of Capital Expenditure in the project report and sanction thereof, Margin Money (subsidy) on the actual availment of Capital Expenditure only will be retained and excess, if any, will be refunded to KVIC, immediately after the project is ready for commencement of production.

  • Working Capital component should be utilized in such a way that at one point of stage it touches 100% limit of Cash Credit within three years of lock in period of Margin Money and not less than 75% utilization of the sanctioned limit. If it does not touch aforesaid limit, proportionate amount of the Margin Money (subsidy) is to be recovered by the Bank/Financial Institution and refunded to the KVIC at the end of the third year.

  • Rate of interest and repayment schedule Normal rate of interest shall be charged. Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed by the concerned bank/financial institution. It has been observed that banks have been routinely insisting on credit guarantee coverage irrespective of the merits of the proposal. This approach needs to be discouraged. RBI will issue necessary guidelines to the Banks to accord priority in sanctioning projects under PMEGP. RBI will also issue suitable guidelines as to which RRBs and other banks will be excluded from implementing the Scheme.


Orientation and Training under PMEGP  
  • The staff and officers of KVIC, KVIB, DIC and concerned agencies have to be sensitized on the operational modalities of PMEGP which can be imparted in the ‘one day training workshops’ to be conducted throughout the country at State / District levels by KVIC (in coordination with KVIBs) and DICs. 40 such programmes per year will be organized by KVIC and DICs (each). KVIC and DICs may organize such training workshops jointly, wherever feasible, on the basis of guidelines to be issued by KVIC separately, for this purpose.

Registration  
  • Registration with the KVIC/KVIBs/State DICs under the Scheme is voluntary. No registration fee will be charged from the beneficiaries and the funds available under Forward and Backward linkage will be utilized to meet expenses on documentation cost, etc. Beneficiary will submit quarterly report about production, sales, employment, wages paid etc. to the State/Regional Director of the KVIC/KVIB/State DIC, and KVIC will in turn analyze and submit a consolidated report to the Ministry of MSME, every six months.


Implementation of the Scheme PMEGP Year wise Target and Achievements

Year

Target

Achievement

%age of Ach.

 

A/C

Amt.(lacs)

A/C

Amt.(lacs)

(Financial)

2008-09

695

1661.16

155

318.04

19

2009-10

4946

11692.76

2548

6061.19

52

2010-11

4083

13219.41

1917

7139.88

54

2011-12

982

3420.00

2103

7412.99

217

2012-13 2329 10851.72 822 3431.48 32
2013-14 3314 8054.64 2473 10323.78 128

For more information: Click here to download complete Details of this Scheme(PMEGP)     


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Convenor,
J&K State Level Bankers' Committee (SLBC)


Telephone / FAX No: 0194-2481925
PABX: 0194-2481930 -35
Ext. No/s: 1140, 1141, 1142 & 1143
Email: convenorbank@jkbmail.com

Mr. S. K. Bhat
President,
President (LBD/SLBC/RRBs/Finance)

Corporate Headquarters, Srinagar

Telephone No: 0194-2484384, 2486420 (Fax)
PABX Nos: 0194-2481930 - 35
Ext.No: 1181, 1180,
Cell No: 8803004092
Email Id: sk.bhat@jkbmail.com

 
 
 
 

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