Excelsior Correspondent
JAMMU, Dec 11: The Empowered Governing Body of Employment Facilitating Agency headed by Chief Secretary, Mohammad Iqbal Khanday, today reviewed the progress of J&K Self Employment Scheme in the State.
Detailed discussions were held to further incentivize the existing schemes to make them attractive, more specifically, the State schemes. Besides the Governing Body also held detailed deliberations on the Revised Guidelines of J&KSES.
Under the J&K Self Employment Scheme, unemployed youth of 18 years age and above, with a minimum qualification of 8th pass or having qualified one year training course from a Government institution are provided with incentives like interest subsidy, capital subsidy and margin money to establish their own employment generating units. Incentives are provided for projects costing Rs 2 lakh for retail trade, Rs 3 lakh for services/industries trade and Rs 10 lakh for joint ventures in retail and services/industries.
The financial pattern involves bank loan of 75%. As an incentive, Margin Money at the rate of 15% of the project cost is paid to the beneficiary as an interest-free loan towards equity contribution of the entrepreneur which is repayable in 5 equal yearly instalments after the liquidation of the loan amount. The Government also provides Interest Subsidy to beneficiaries on the bank loan on tapering basis for a period of two years. During 1st 6 months, 100% interest subsidy is provided, then 75% for the next one year and 50% for the next 6 months.
The capital subsidy of 5% of the project cost subject to a limit of Rs. 7500 is also provided under the scheme. The scheme is being implemented by the Employment Department.
During the meeting, the Governing Body also approved the proposal submitted by the J&K Entrepreneurship Development Institute (JKEDI), regarding the payment of institutional fee to JKEDI under Seed Capital Fund Scheme (SCF), to meet out the training expenditure.
The meeting was attended by Principal Secretary, Planning and Development, Commissioner Secretary Labour and Employment, Commissioner Secretary Industries and Commerce, Secretary Technical Education, Director EDI, Director Employment and other officers.
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