Uttar Pradesh Khadi & Village Industries Board

Government of Uttar Pradesh

CM Village Industries Employment Schemes

1. Objective

With a view to discourage the migration of rural educated youth to the urban areas and to solve the problem of unemployment rappidley increasing the captioned scheme has been formulated to provide financial assistance to the rural individual entrepreneurs to the tune of Rs. 10-00 lacs by the Banks, under this scheme over and above rate of interest of @ 4%, which is subject to 10% will be borne as the Interest Subsidy for general candidates and for reserved categories (SC/ST,OBC,Women,ex-serviceman,PH/VH) rate of interest will be fully exempted and borned by the government of U.P. as interest subsidy. The commercial banks and Regional Rural Banks under which service area approach the villages or rural areas fall will provide bank loan as per rules. In Districts, the scheme will be implemented by Khadi & Village Industry board under direct control of District Magistrate.

2. Period of Scheme

This scheme will remain in operation for a period of five years from the date of issue of notification as state sponsored scheme.

3. Area Of Operation

Rural areas as defined under the U.P. Panchayat Raj Adhiniyam by the State Govt. and rural areas as defined by Khadi Village Industries commission/Reserve Bank of India from time to time.

4. Eligible Entrepreneurs

Under this scheme entrepreneurs will be benefited mainly on the following merits

  1. Preference will be given to the candidates trained by Industrial Training Institute/Ploytechnic.
  2. Educated unemployed youth whose age for Govt. service has expired.
  3. A candidate trained under TRYSEM and any other Govt. scheme.
  4. Traditional artisan
  5. Women interested in self employment.
  6. Candidate passed commercial education [10+2 with village industry as a subject.]
  7. Who has registered himself in Employment Exchange of the concerned district.

5. Identification Of Beneficiary

The District Level Committee, headed by DM/CDO/SDM as constituted for other State Sponsored Schemes will identify the borrowers or by the committee as constituted by U.P. Khadi Village Industry Board. Before sanctioning loan, it is to be ensured that the borrowers have acquired training and should be the bonafide resident of the village & permanently residing there. He should have required margin money for establishment of unit.

6. Eligibility Criteria For Selection

  1. Borrowers should not be below the age of 18 years and not more than 50 years.
  2. 50% of the borrowers should be from SC/ST /O.B.C. category.
  3. Gramodyog units should be identified based upon the availability of raw materials locally for identified beneficiaries.
  4. Preferences will be given to such units which would be engaged in production of commodities to meet out the daily necessities of local cousumers.।