Skilled Youth Startup Scheme

Overview of the Skilled Youth Startup Scheme (Skilled Youth Startup Yojana)

Initiated in 2020, the Skilled Youth Startup Scheme in Sikkim seeks to empower educated yet unemployed youth to launch various business ventures. This initiative, implemented by the Department of Commerce & Industries, provides financial aid through loans combined with back-ended subsidy support, facilitating the establishment of diverse enterprises.

About the Scheme

Employment generation has long been a pressing issue in Sikkim. With a commitment to fostering self-employment opportunities, the Government of Sikkim has devised the Skilled Youth Startup Scheme. The scheme aims to create equal entrepreneurial opportunities across both rural and urban sectors, particularly targeting the educated unemployed youth. By enabling them to initiate businesses in various sectors such as Manufacturing, Services, Cooperative ventures, and Agriculture, the scheme offers loans with substantial subsidy assistance—50% for Below Poverty Line (BPL) individuals and 35% for others—on bankable projects.

Objectives

• To cultivate entrepreneurial skills among unemployed youth, motivating them to establish commercially viable businesses across sectors like Agriculture, Horticulture, Food Processing, Animal Husbandry, Handloom, Handicrafts, Retail, Tourism, and Manufacturing.
• To ensure equitable entrepreneurial opportunities in both rural and urban locales by supporting the establishment of new self-employment projects via one-time non-refundable financial assistance of 50% or 35%, following project approval from banks or Public Sector Undertakings (PSUs).

Benefits of the Scheme

• Financial assistance through bank loans, complemented by a back-ended subsidy of 35% or 50%.
• Maximum project cost eligibility varies by category, reaching up to ₹20 lakhs.
• Mandatory Entrepreneur Development Training of three days is provided prior to loan disbursement.
• Persons with Disabilities (PwDs) receive preference with eligibility for a 50% subsidy.
• Support is available across a broad spectrum of sectors, including:
• Dairy, poultry, piggery, and food processing.
• Wood and bamboo crafts.
• Homestays and tourism.
• IT services, tailoring, and coaching centers.
• Automobile workshops and diagnostic centers.

Activities Covered and Maximum Project Cost

Eligibility Criteria

• Applicants must hold a Certificate of Identification (COI) or a Sikkim Subject Certificate/Residential Certificate for urban areas.
• Applicants should be unemployed and have completed at least Class V from a recognized educational institution.
• For technical, manufacturing, or service-oriented projects, a valid certification from a recognized technical institute is mandatory.
• Applicants must be aged between 18 and 45 years at the time of application.
• Only one member per family can apply for the scheme.
• The family’s annual income must not exceed ₹8 lakhs.
• For married applicants, family includes self, spouse, and children; for unmarried applicants, family includes parents and unmarried siblings.
• If the applicant is a child of a Government employee, eligibility is restricted to children of Group ‘C’ or ‘D’ employees only.
• A contribution of 5% to 15% of the project cost is required, as per bank regulations.
• Applicants must not be defaulters with any nationalized bank, financial institution, or cooperative bank.
• Previous beneficiaries of the CMSS or PMEGP schemes are ineligible.
• A valid trade license for the proposed business or project is required.
• Persons with Disabilities (PwDs) will receive priority and are eligible for a 50% loan subsidy.

Application Process

To apply, follow these steps:

1. Submit the completed application form (Annexure-I) along with a Detailed Project Report (DPR) and required documentation.
2. Applications should be sent to the General Manager, District Industries Centre (DIC) in either Gangtok or Jorethang.
3. The application will be assessed by a Selection Committee composed of representatives from the department and banks.
4. Upon approval, the project will be forwarded to banks for sanctioning the loan.
5. Completion of mandatory training is required before the loan is disbursed.

Loan Repayment

Repayment of the loan, including interest, will be the applicant’s sole responsibility under the bank’s terms. If beneficiaries wish to close their loan accounts early, prior approval from the Commerce & Industries Department is necessary. Beneficiaries can opt for early closure after one year for agricultural and allied activities, while a three-year lock-in period applies to other projects.

Note: Any exaggerated project costs aimed solely at obtaining a larger subsidy will not receive approval from the Committee.