9 lesser known schemes for rural entrepreneurs that can be of great help

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Rural India poses a huge entrepreneurial potential, which is still remain unexplored. Lack of awareness about government policies and schemes is a major hurdle in the growth of rural entrepreneurs. Here are some schemes that can be of great help to rural businessmen.

1. Prime Minister Employment Generation Programme

Description: The scheme provides subsidy for entrepreneurs. It has been implemented by Khadi and Village Industries Commission (KVIC) through identified banks, only for new projects.

Nature of assistance: Subsidy varies from 15% to 35%, with 5% to 10% beneficiaries’ contribution, and the balance through banks as term loan and working capital loan

Who can apply: Aspiring entrepreneurs, Self Help Groups (SHGs), etc.

From where to apply: KVIC

2. Janashree Bima Yojana For Khadi Artisans

Description: It is a group insurance for khadi artisans formulated by KVIC with LIC

Nature of assistance: Insurance cover to khadi artisans for natural death due to accident and loss of both eyes and both limbs, plus a scholarship up to 12th standard for two children

Who can apply: Khadi spinners and weavers aged between 18 years and 59 years, and below and marginally above poverty line

From where to apply: KVIC

3. Market Development Assistance

Description: Under this scheme, financial assistance are provided for khadi institutions to improve outlets and production processes besides giving incentive to customers

Nature of assistance: 20% of production cost for khadi cotton, woolen silk and poly vastra against the approved production target

Who can apply: Khadi institutions of A+, A, B and C categories

From where to apply: KVIC

4. Rejuvenation, Modernisation and Technology Upgradation of Coir Industry (REMOT)

Description: The credit linked subsidy for setting up of coir units with project cost plus one cycle of working capital (up to 25% of the project cost and not to be considered for subsidy)

Nature of assistance: 55% bank loan, 40% margin money (subsidy) as government grant, 5% beneficiary contribution

Who can apply: Individuals, SHGs, NGO, etc.

From where to apply: Coir Board field offices through District Industries Centre (DIC)

5. Centrally Sponsored Schemes (CSS) of Export Market Promotion

Description: The CSS is provided for the overall development of coir industry; to support modernisation of export-oriented units to popularise coir products in global markets, and to participate in international fairs, seminars, etc.

Nature of assistance: Up to Rs 2 lakh for participating in fairs and 25% of production cost with a ceiling of Rs 15,000 for publicity material

Who can apply: Any coir MSME, any coir exporter MSME with Free-on-Board (FoB) turnover below Rs 2 crore and registered with Coir Board

From where to apply: Coir Board field offices through DICs

6. Skill Upgradation & Quality Improvement And 19 Mahila Coir Yojana

Description: Skill training to develop coir industry, and the provision of spinning equipment to women to empower them

Nature of assistance: Two months of training with Rs 750 per month stipend, one-time subsidy of 75%, cost of motorised traditional rates, with a ceiling

Who can apply: Any coir MSME, any coir exporter MSME with FoB turnover below Rs 2 crore and registered with Coir Board

From where to apply: Regional Extension Centre

7. Development of Production Infrastructure

Description: Provides modern infrastructure for production units leading to improved productivity, quality and employment opportunities

Nature of assistance: 25% cost of equipment with a maximum ceiling of Rs 9 lakh and up to Rs 2 lakh for modernisation/renovation

Who can apply: New coir processing units registered with Coir Board

From where to apply: DIC

8. Welfare Measures Scheme (Coir Workers)

Description: Accident insurance providing financial compensation for disabled/nominee

Nature of assistance: Accident death: Rs 50,000; Permanent total disability: Rs 50,000; Permanent partial disability: Rs 25 000; Provision for finger cut: as applicable

Who can apply: Coir workers aged above 18 years

From where to apply: Coir Board offices

9. Programme for Promotion of Village Industry Cluster - Rural Industry Service Centre (RISC) for Khadi And Village Industry

Description: To provide infrastructure support and services for local units to upgrade production capacity and skills, and market promotion

Nature of assistance: Maximum of Rs 25 lakh with 25% self-contribution, in three equal instalments

Who can apply: Farmers, entrepreneurs, NGOs, SHGs, etc.

From where to apply: KVIC website

This article first appeared in the Indian edition of Entrepreneur magazine (August, 2015 Issue).

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