They will be eligible for loans up to Rs. 25 lakh with 15 to 35 per cent subsidy
ERODE: Recession or no recession entrepreneurship in the district seems to be marching at its usual pace.
At least that is the impression one gets at the meeting conducted to screen applications for financial assistance under the Prime Minister’s Employment Generation Programme.
As many as 348 entrepreneurs to-be turned up at the meeting to submit their proposals to a committee comprising District Industries Centre, Khadi and Village Industries Commission and Tamil Nadu Khadi and Village Industries Board.
The three are the nodal agencies in the district for screening and processing applications. Of the 348 who submitted applications, 286 have been selected for assistance to banks, which will do an independent feasibility study to determine the quantum of funding.
The Erode DIC received 134 applications of which it selected 115 for a total project cost of Rs. 6.68 crore. The KVIC received 144 applications, selected 114 for Rs. 13.54 crore. And the TNKVIB received 70 applications, selected 57 with a total project cost of Rs. 4.93 crore.
The entrepreneurs selected are eligible for loans up to Rs. 25 lakh with subsidy ranging from 15 to 35 per cent depending on a variety of factors.
Women entrepreneurs and those from Scheduled Caste and Scheduled Tribe communities will get 25 per cent subsidy if they set up their industries in urban areas and 35 per cent if they are in rural areas. For all other entrepreneurs the Government gives 15 per cent subsidy for industries in urban areas and 25 industries in rural areas. This is the first meeting the three agencies have conducted for the financial year. Before the end of the FY they will have to conduct two or more meetings to reach the target, which stands at 130 entrepreneurs.
An important feature of the scheme, as the name mentions, is employment generation. For every Rs. 1 lakh capital expenditure the entrepreneur has to provide employment to a person. This is also part of the target, which says 1,298 persons have to be provided employment in the district under the scheme in the current financial year.
Majority of the applications the agencies received are for the setting up of garment manufacturing industries, units for plate production out of areca nut leaves.