Deen Dayal Upadhyaya Swavalamban Yojana

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• The Government of Arunachal Pradesh has decided to continue the Deen Dayal Upadhyaya Swavalamban Yojana to encourage unemployed youths and entrepreneurs and to gain access to low cost capital for entrepreneurship.
    
  1. Under this scheme, a provision of 40% front ended capital investment subsidy to the beneficiaries has been made who wish to set up small and medium enterprises with a loan from Rs. 10.00 lakhs up to Rs.50.00 lakhs the of project cost. The cost of land and building shall be excluded from the project cost.
  2. The loan component would be 30% to 50% of the project cost. The cost of land and building shall be excluded from the project cost.
  3. Entrepreneurs would be required to contribute at least 10% to 30% of the project cost as their contribution. Preference will be given to those who contribute a greater proportion. The cost of land and building shall be excluded from the project cost.
  4. Women entrepreneurs will be additionally eligible for 5% interest subsidy annually provided the entrepreneur does not become Non-Performing Asset (NPA).
• The sectors covered under this scheme are:-
  1. Food-processing units in agriculture, horticulture and allied sectors include packaging, cold chain, cold storage, milk processing etc.
  2. Eco-tourism including home stays and tour operators.
  3. Traditional textile weaving for modernization of traditional looms and purchase of new looms to start a new weaving unit.
  4. To be set up Small scale manufacturing units / bamboo processing units/service centers/ diagnostic.

  (Preference to be given to those unemployed youths having Degree/Diploma holders in Tourism & Hospitality, ITI or any other technical degree/diploma related to Fabrication, IT, Mobile repairing, Motor Garage etc. Preference will also be given to private doctors for opening of medical clinic and diagnostic centers in the Border CD blocks. However, the clinical fees shall be fixed at a reasonable rate).

• A District Level Screening Committee would screen the loan applications.
  

  The District Level Screening Committee shall comprise of the following:-

  1. Deputy Commissioner
  2. ADC HQ
  3. District Industries Officer
  4. Distinct Agricultural Officer
  5. District Horticulture Officer
  6. District Fishery Officer
  7. District Textile officer
  8. District Tourism Officer
  9. District Lead Bank Manager
  10. District Planning Officer

  Chairman Member Member Member Member Member Member Member Member
  Member Secretary

• Based on the budgetary provision, Planning & Investment Division of Finance, Planning & Investment Department will convey district-wise yearly target to the Deputy Commissioners. The State Government will reserve the right to review the targets, if necessary.
• The District Planning Officer (DPO) will function as Entrepreneurship Development Officer. The prospective entrepreneurs should submit their applications in prescribed format as at Annexure – ‘A’ along with the educational qualifications and make a presentation before the District Level Screening Committee which would meet at least once a month.
• While submitting the project proposals at the District level, the candidate will have to submit a concept note in the standard format. The screening committee will first scrutinize the proposals by involving Bank Managers. The short listed candidates will have to make PPT presentation before the District committee before it is forwarded to the concerned banks . The concerned bank managers should satisfy themselves that the project proposal is bankable and also ensure that all relevant documents for loan are enclosed with the application. The viability of the project shall be determined by the concerned Bank and will be sanctioned by the Bank.
• The commitment by the State Govt. will be only in the form of a guarantee to release front ended subsidy by the State Govt. subject to the condition that any Scheduled Bank should be authorized to advance loan against the project of the applicant and the onus of availing the loan from the scheduled bank will be entirely and entirely the responsibility of applicant.
• The Planning & Investment Division will take necessary steps for obtaining A/A and E/S from the competent authorities and transfer subsidy amount to the bank. A mutually agreed amount may be placed with the bank in advance which will act as buffer for this purpose. Thereafter, the bank will consider the application of the candidate for loan. Once the loan is approved, the same will be conveyed by the Bank to the Planning & Investment Division through Lead Bank Manager monthly wise for information.
• Any request for review maybe re-submitted to the District Committee only for appropriate decision Since, there is a loan component in the scheme which has to be decided by Banks depending on the bank-ability of the project.
• As governed by the various Acts of the Government in force, Collateral Security charged to the bank can be sold without restriction accordingly.
• Any diversion of funds / misutilization of funds may be governed as per relevant existing acts of the Government/ Bank.
• State Government will not provide any guarantee for loan default. It shall be administered as per the banking norms of the concerned banks.

Beneficiary:

Prospective entrepreneurs and unemployed youths preferably having Degree/Diploma holders in Tourism & Hospitality, ITI or any other technical degree/diploma related to Fabrication, IT, Mobile repairing, Motor Garage etc. Preference will also be given to private doctors for opening of medical clinic and diagnostic centers in the Border CD blocks.

Benefits:

Provision of 40% front ended capital investment subsidy to the beneficiaries for setting up small and medium enterprises with a bank loan from Rs. 10.00 lakhs up to Rs.50.00 lakhs the of project cost.