About Karma Sathi Prakalpa

Karma Sathi Prakalpa

Introduction

The Government of West Bengal has taken remarkable initiatives in employment generation for the promising youth through opening new doors to help intending or prospective entrepreneurs and make them self-dependent, those who are interested in new ventures.
Employment generation is one of the thrust areas of the State Government and because of that Government of West Bengal has launched and announced the West Bengal Karma Sathi Prakalpa Scheme 2020.

Objectives

To facilitate intending or prospective entrepreneurs of the state in setting up new manufacturing enterprises and small businesses including services and trading.

To create gainful self-employment opportunity in both rural and urban areas of the state.

This scheme aims to provide financial assistance and help passionate and prospective young entrepreneurs to start their own business as a self-employed youth who will become an employer in the future and generate more employment.

Under the scheme, soft loan and subsidy will be provided for taking up any new income-generating project in the manufacturing, service, and trading/business sector up to Rs. 2 lakhs.

The Karma Sathi loan will be provided by the State-owned Cooperative Bank on soft terms.

The scheme will commence from the date of Gazette Notification and shall remain in force for a period of three years thereafter.

Eligibility

Any intending or, prospective entrepreneur fulfilling the conditions below can apply. Only one member from a family shall be eligible to apply under this Scheme where “family” means parents and spouse.

Age: Any intending or prospective entrepreneur in the age group 18 – 50 years(from the date of Notification – Dt. 9th September 2020).

Educational Qualification: Minimum Class VIII passed apply in  Karma Sathi Prakalpa. Preference will be given to intending entrepreneurs who are registered with the Employment Bank.

Any new income-generating activity taken up for self-employment in manufacturing, services, and trading will be eligible for assistance under the scheme. 

Apply Online Karma sathi prakalpa 

GOVERNMENT OF WEST BENGAL

Department of Micro, Small and Medium Enterprises and TextilesSilpa Sadan (7th & 8th Floor)4, Abanindranath Tagore Sarani, Kolkata-700 016

No. 1825/MSMET-18011(11)/4/2020,                                                       Dated 9th September, 2020.

NOTIFICATION

Whereas the Government of West Bengal is keen to provide a thrust to generate gainful employment opportunity inthe State;And whereas the Government of West Bengal considers it necessary to assist the young and enthusiastic entrepreneursof the State both in rural and urban areas in setting up of new enterprises in manufacturing and small businesses inservices and trade to make them self-reliant;Now, the Governor is hereby pleased to approve and sanction the implementation of a new Scheme for setting upof new enterprises in manufacturing and small businesses in services and trade for entrepreneurs of the State.

Title of the Scheme: The scheme will be called as ‘Karma Sathi Prakalpa‘.

2. Objectives:–i. To facilitate young entrepreneurs of the state in setting up new manufacturing enterprises and smallbusinesses including services and trading.ii. To create gainful self-employment opportunity in both rural and urban areas of the state.

3. Commencement and duration of the scheme :– The scheme will commence from date of Gazette Notificationand shall remain in force for a period of three years thereafter.

4. Eligibility Criteria:– Any intending or, prospective entrepreneur fulfilling the conditions below can apply. Onlyone member from a family shall be eligible to apply under this Scheme where “family” means parents and spouse.i. Age: Any intending or prospective entrepreneur in the age group 18 – 50 years.

ii. Educational Qualification: Minimum Class VIII passed. Preference will be given to intending entrepreneurswho are registered with the Employment Bank.

5. Type of assistance:– Under the scheme, soft loan and subsidy will be provided for taking up any new incomegenerating project in manufacturing, service and trading/business sector up to Rs. 2 lakhs. The loan will be provided bythe State-owned Cooperative Bank on soft terms.

6. Quantum of Government Subsidy:– There are two components of government subsidy under this scheme.i. Project Subsidy: 15% of the project cost subject to a maximum of Rs. 25,000.ii. Interest subsidy: Will be paid to the entrepreneur on annual interest paid by him/her to the Co-operative Bank:a. 50% for timely repayment of interest for maximum period of 3 yearsb. 40% for all other cases for a maximum period of 3 years

7. Own Contribution (Margin Money):– The applicant whose project is finally sanctioned under the scheme will berequired to pay his/her own contribution in the following manner:a) Project cost up to Rs.50,000: 5% of the project cost for all categories of applicantb) Project cost above Rs.50,000: 5% of the project cost for SC/ ST/ Woman/ Differently abled/ Minoritycommunities and 10% of the project cost for others.

8. Eligible scheme:– Any new income generating activity taken up for self-employment in manufacturing, servicesand trading will be eligible for assistance under the scheme. Illustrations explaining break-up of margin money, projectsubsidy and cooperative Bank loan for a few typical applications are shown below:–

Illustration 2
 Project Cost: Rs.65,000
 Category of applicant: SC/ST/Woman/Differently abled/Minority
 Source of finance
Own contribution @5% =Rs.3,250
Project subsidy by Govt @15% =Rs.9,750
State Co-op Bank loan @80% =Rs.52,000
Total =Rs.65,000

About Karma Sathi Prakalpa