The Empowered Governing Body of Employment Facilitating Agency headed by chief secretary Mohammad Iqbal Khanday on Wednesday reviewed the progress of the Jammu and Kashmir Self Employment Scheme (J&KSES).
Detailed discussions were held regarding adding more incentives to the existing schemes, especially the state schemes, to make them attractive. The governing body also held detailed deliberations on the revised guidelines of the J&KSES.
Under the scheme, unemployed youths aged 18 years and above, who have at least passed Class 8 or have completed a 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 Rs 2 lakh projects for retail trade, Rs 3 lakh for service industries trade and Rs 10 lakh for joint ventures in retail and service industries.
The financial pattern involves bank loans 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 five 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 the first six months, 100% interest subsidy is provided, then 75% for the next one year and 50% for the next six months.
The capital subsidy of 5% of the project cost, subject to a limit of Rs 7,500 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 the training expenditure.