The Hindu : Tamil Nadu / Chennai News : Scheme to encourage first generation entrepreneurs

Online edition of India's National Newspaper
Friday, Feb 13, 2009
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu - Chennai

Scheme to encourage first generation entrepreneurs

Staff Reporter

— Photo: M.VEDHAN

BOOSTING BUSINESs: Aspiring women entrepreneurs interact with S.Shaktivel, Regional Joint Director of Industries and Commerce (first from left). IOB Lead bank manager A.Kathirvel and T.S.Balakrishnan of KVIC are also in the picture.

CHENNAI: The Ministry of Micro, Small and Medium enterprises has introduced a new Prime Minister’s Employment Generation Programme by merging the Prime Minister’s Rozgar Yojna and Rural Employment Generation Programme.

“The scheme is aimed at boosting entrepreneurship among first generation business persons,” T.S.Balakrishnan, nodal implementing officer from the Khadi and Village Industries Commission (KVIC), said at an awareness camp to discuss the features of the scheme at the Collectorate here on Wednesday.

Implemented by the KVIC and the District Industries Centres, the scheme would disburse loans amounting to Rs.25 lakh to the manufacturing sector and Rs.10 lakh to the service sector, provided the applicant has cleared standard VIII and has a well-developed and promising business model to offer.

Under the scheme, a two-week Entrepreneurship Development Programme is mandatory before loans are sanctioned. The banks would finance up to 95 per cent of the sanctioned project cost for applicants from economically weaker sections and up to 90 per cent for those in general category.

Representatives from nationalised banks spoke at the meeting on how best to avail themselves of the loans under the scheme. Lead bank manager A. Kathirvel of the Indian Overseas Bank said entrepreneurs would receive loans only if their business ideas were innovative.

“During the interview, bank managers would pose a volley of questions to test the confidence levels of the aspiring business persons. Only if the bank is convinced that the business will be successful and the applicant has the ability to make it one, will the loan be granted,” he said.

Non-farm sector

Regional Joint Director of Industries and Commerce S.Shaktivel said the loans were meant for the non-farm sector. “Since the government cannot give jobs to all unemployed persons, it has initiated this scheme to encourage self-employment,” he said. Business partnerships were not encouraged. However, self-help groups of women would receive a major boost under the scheme, he said. Anyone with an innovative business idea could avail loans under the scheme, Mr.Shaktivel said, adding that outdated businesses such as opening a PCO booth would not be encouraged.

A successful entrepreneur, Bala Saraswathy said she started with a loan of Rs. 1 lakh from the MSME office in Guindy and today had a screen printing business with an annual turnover of Rs.1 crore. She said there were no trade secrets to share and the only route to success was self-motivation and persistent effort.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu