Thiruvananthapuram: The Kerala government on Tuesday announced a new Entrepreneurship Development Programme to address the issues of shortage of working capital and availability of credit faced by startups and small entrepreneurs in the backdrop of the COVID-19 pandemic.
“The pandemic has had a major impact on the state”s economy creating a crisis for small entrepreneurs and startups. Due to the closure of trade and disruptions in the supply chain, there is a need to increase domestic production,” Chief Minister Pinarayi Vijayan told the media.
“New opportunities need to be created for those who have lost their jobs in various fields and for those returning from different countries and states,” he added.
The ”Chief Minister’s Entrepreneurship Development Programme” aims to identify 2,000 entrepreneurs per year and plans to launch 1,000 new small and medium ventures every year for the next five years, creating 5,000 new ventures, he said.
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The programme will be implemented through the Kerala Financial Corporation (KFC), which will provide loans up to 90 per cent of the project cost subject to a maximum of Rupees 50 lakh at 10 per cent interest.
The government will give three per cent interest as subsidy thereby; the net interest rate will be seven per cent. Selected candidates will be given five days of entrepreneurship training and guidance. In addition, KFC will also be launching three new schemes to protect existing establishments from the threat of closure. Working capital loans up to Rs 10 crore will be sanctioned as per the purchase order.
Seed loans of up to Rs 1 crore would be given to enterprises providing socially relevant products or services. Working capital of up to Rs 10 crore will be available to IT companies subject to their valuation by SEBI accredited VC funds. The government will provide two per cent for these three schemes, vijayan said.
MSME Reporter is an initiative to support MSME sector units. Use www.msmereporter.com for important announcements such as policy changes, schemes, tenders, notifications, norms, circulars, opportunities etc. relevant for Entrepreneurs. Feel free to share our updates with your connects to strengthen the MSME fraternity.
