Jaipur, 26 Aug. The state government is continuously taking important decisions to give a boost to the state’s economy. the Chief Minister’s Laghu Udyog Protsahan Yojana will be changed to increase employment and encourage self-employment, . It will be altered to make it more accessible and beneficial for entrepreneurs. Chief Minister Shri Ashok Gehlot has approved the proposals to amend the provisions of the scheme and the guidelines for it.
As per the proposal approved by Shri Gehlot, only micro and small enterprises defined by the Government of India will be eligible for loans and interest subsidies under the scheme. Also, the application process for interest subsidy will be simplified at several levels.
As per the new provision of the scheme, it will not be mandatory for the lending financial institution to send the application for interest subsidy to the District Level Task Force Committee. Such cases will be disposed of at the level of District Nodal Officer by accepting eligibility for a grant. Rajasthan Urban Co-operative Bank will also be able to provide loans as a financial institution under this scheme.
According to the new proposal, handicrafts, artisans, or craftsmen cardholders will be given 100% reimbursement of interest amount as grant on loans up to Rs 3 lakh. For weavers holding Weavers Card, the facility of 100% recharge of interest amount on loan up to Rs.1 lakh will continue at present.
In the revised scheme, by modifying the eligibility for loan interest subsidy of up to Rs 10 crore by financial institutions and maximum 25 percent of the total loan amount for land, loan up to Rs 10 crore and maximum for expansion, diversification, and modernization of industry. To provide loans up to Rs 1 crore and a maximum of 25 percent of the total loan amount for land will be eligible for loan interest subsidy.
In addition, projects with maximum working capital of 40 percent of the working capital of composite loans in the manufacturing and service sector and a maximum of 75 percent of working capital of composite loans in the business sector will also get the benefit from the scheme.
Under the scheme, micro-enterprises will be able to get a maximum loan of Rs 1 crore for business. In this, priority will be given to micro-enterprises to get two-thirds of the interest subsidy amount. If the ineligible industrial unit avail the benefit of interest subsidy under the scheme, the District Task Force will be able to cancel the case. Also the amount paid will be recovered with 18 percent penal interest.
Enterprises engaged in activities carried out by mining, real estate, educational institutions, coaching, non-profit organizations, NGOs and trusts will not be eligible for benefits under this scheme
The applications remaining at the end of the year will be considered eligible for interest subsidy in the coming financial year. By including these applications in the set targets of the coming year, priority will be given to them in giving the benefit of interest subsidy.
Under the scheme, liabilities of more than the available budget limit will not be created every year in the applications sent for loan disbursement. Also with the interest subvention to various financial institutions. In this, priority will be given to entrepreneurs from Scheduled Castes or Tribes and Scheduled Tribes community. As much as possible 20 percent of the target budget for loan disbursement and 15 percent for interest subvention will be given to the entrepreneurs of these sections.
Under the scheme, as much as possible 30 percent of women entrepreneurs will be given cooperation and priority in providing loans.
Applications from the entrepreneurs for loan or interest subsidy will be dealt on the ‘first come-first serve’ basis. Preference will be given to the applications of micro and small industries. Also the ones from economically backward districts. Applications will be received up to a maximum of twice the target allocated for the loan amount. Also interest subsidy in different districts, panchayat samitis, or urban areas will differ.
As per the revised guideline, priority will be given to micro category entrepreneurs. Also to applications with low credit volume. Hence the entrepreneurs can be benefitted by setting up the maximum number of small enterprises. In case the budget is available for interest subvention, the benefit on loan taken for setting up solar power plant . This will be given as the last priority.