Sikkim Skilled Youth Startup Scheme

The Government of Sikkim, under its Skilled Youth Startup Scheme, will provide a back-end subsidy on self-employment business activity to all eligible educated but unemployed youth. BPL category applicants will get a 50% subsidy on project cost, and other category applicants will get a 35% subsidy on project cost. The maximum subsidy limit is Rs. 7 lakh.
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Introduction of Sikkim Skilled Youth Startup Scheme: A Brief Insight

• Sikkim Government started a one of its kind self-employment startup scheme named “Skilled Youth Startup Scheme” on 15th of August 2020.
• The main aim of the government behind starting this scheme is to generate entrepreneurial opportunities in rural and urban areas of Sikkim State for educated but unemployed youth.
• This scheme is implemented by Commerce and Industries Department of the Sikkim Government.
• Sikkim Government will provide back-end financial subsidies to all eligible youths to become self-employed under the Skilled Youth Startup Scheme.
• Educated Youth can avail the benefit of this scheme if they are interested in setting up their own business activity under any of the below-mentioned sector :-
  • Agriculture and Allied Activities.
  • Youth Enterprises.
  • Cooperative Sector.
  • Business Activities.
  • Service Sector.
  • Manufacturing Sector.
  • Food Processing.
  • Horticulture Activities.
  • Animal Husbandry.
  • Handlooms and Handicrafts.
  • Retail Sector.
  • Tourism Sector.
• Government of Sikkim will provide 35% or 50% or a maximum of Rs. 7 Lakh as back-end subsidy on project cost whichever is lower, under the Skilled Youth Startup Scheme.
• 50% Subsidy on Project Cost is for BPL Category Applicant, whereas other category applicants will get 35% subsidy on project cost.
• Beneficiary Applicant will have to contribute 5% to 15% of the project cost on their own to get the benefit of back-end subsidy from the government under this scheme.
• Remaining Project Cost can be obtained through a bank or any financial institution.
• Sikkim Government will release the back-end subsidy after disbursement of the bank loan, and the amount of subsidy will be fixed and deposited in the name of the beneficiary applicant in the respective bank.
• If any applicant’s family annual income is more than Rs. 8 lakh per year, then they are not eligible to apply for the back-end subsidy under the Skilled Youth Startup Yojana of the Sikkim Government.
• Minimum Education Qualification required for this scheme is class 5th passed.
• It is mandatory for a beneficiary applicant to take part in the Entrepreneur Development Programme Training of 5 days before the disbursement of the loan amount.
• There is no Online Application Form or Official Website of the Skilled Youth Startup Scheme is available.
• Beneficiary Youth will have to apply through Offline Application Form, which is available in the Office of the  District Industries Centre.
• Contact the General Manager of the District Industries Centre at Gangtok or Jorethang for any assistance or help required regarding Sikkim Government’s Skilled Youth Startup Scheme.

Benefits Provided to Eligible Beneficiaries

• Government of Sikkim will provide the below-mentioned benefits to all eligible educated and unemployed youths under its Skilled Youth Startup Scheme :-
  • Subsidy will be provided by the Government for Self-Employment Business Activity.
  • Maximum Subsidy provided under this scheme is up to Rs. 7 Lakh.
  • BPL Category Beneficiary will get a 50% Subsidy of the Cost of the Project.
  • Other Category Beneficiary will get a 35% Subsidy of the Cost of the Project.
  • Beneficiary Applicant Contribution will be 5% to 15% of the Cost of the Project.
  • Remaining Cost of the Project can be obtained through a Bank Loan.
  • 5 Days Training of Entrepreneur Development Programme/ Skill Development will also be provided.

Eligibility Conditions Required to be Fulfilled

• Subsidy on Project Cost for employment activity under the Skilled Youth Startup Scheme will be provided by the Sikkim Government to only those applicants who fulfill the below-mentioned eligibility criteria of scheme :-
  • Only Sikkim State Permanent Residents are Eligible to Apply.
  • Beneficiary Applicant should be Unemployed at the time of application.
  • Passing Minimum Class 5th is mandatorily required.
  • The Age of the Beneficiary Applicant should be 18 years to 45 years.
  • Beneficiary Applicants’ Family Annual Income should not be more than Rs. 8 Lakh.
  • Beneficiary Applicant should have a Certificate from the Technical Institute for Technical Projects, Manufacturing and Service Sectors.
  • Group C and D Employees’ Children are Eligible to Apply.
  • Beneficiary Applicant should have a Trade License of all kinds of Business.

Ineligibility Criteria of the Scheme

• The Government of Sikkim also sets the ineligibility criteria of the Skilled Youth Startup Scheme :-
  • Children of Government Employees.
  • Applicant should not be a Defaulter of a Nationalized Bank or any Financial Institution.
  • Applicant should not be a Beneficiary of the Chief Minister Startup Scheme or the Prime Minister Employment Generation Programme.
  • If the Beneficiary Applicant’s Annual Family Income is more than Rs. 8 Lakh a year.

Documents Required to be Attached

• Beneficiary Youth will have to attach the following documents with the Application Form of the Skilled Youth Startup Scheme of the Sikkim Government :-
  • Certificate of Identification or Sikkim Subject Certificate or Residential Certificate for Urban Areas.
  • Marksheet and Certificate.
  • Birth Certificate.
  • 2 Recent Color Passport Size Photo of Applicant.
  • Project Report. (In 2 Sets)
  • Voter Identity Card or Certificate from the Local Panchayat.
  • Below Poverty Line (BPL) Certificate.
  • Land Lease Agreement or Land Parcha.
  • Certificate of Income.
  • PWD Certificate. (If Applicable)
  • Unemployment Card of Applicant.

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

• Eligible Youths of Sikkim can apply for subsidized loans under the Skilled Youth Startup Scheme by applying through Application Form.
• Sikkim Government’s Skilled Youth Startup Scheme Application Form can be collected from the District Industries Centre, Gangtok, and Jorethang.
• Collect the Application Form from the District Industries Centre and fill it correctly without making any mistakes.
• Attach all the required documents with the Application Form.
• Skilled Youth Startup Scheme Application Form and Documents will be submitted in the same District Industries Centre in Gangtok or Jorethang.
• Selection Committee under the Chairmanship of the General Manager of the District Industries Centre will scrutinize the received application form and documents and make a list of eligible applicants.
• Subsidy under the Skilled Youth Startup Scheme of the Sikkim Government will only be provided to those projects who are already sanctioned from banks.
• Selected Applicant will also go through the Skill Development Programme/ Entrepreneur Development Programme for 5 Days.
• Department of Commerce and Industries Department will disburse the subsidy amount as per the eligibility of the applicant as a fixed deposit in the name of the beneficiary in the respective bank.
• Application Status of the Skilled Youth Startup Scheme can be checked by visiting the DIC Office.
• Beneficiary Applicant will have to repay the loan amount to the bank with the applicable interest rate.

Business Activity with Maximum Project Cost

• The below-mentioned business activities with their maximum project cost are eligible for backend subsidy under the Sikkim Government’s Skilled Youth Startup Scheme :-
  

  Animal Husbandry Dairy Poultry Piggery	Dairy :- Rs. 5 lakhs Poultry :- Rs. 3 lakhs Piggery :- Rs. 5 lakhs
  Green House Organic Farming	Rs. 3 lakhs
  Food Processing Other Manufacturing Sectors	Rs. 10 lakhs
  Wood Handicraft Cottage Industries	Rs. 10 lakhs
  Metal Fabrication Works	Rs. 10 lakhs
  Tourism. Paragliding Mountain Cycling, etc	Rs. 10 lakhs
  Rural Homestays	Rs. 15 lakhs
  IT. IT Enabled Services	Rs. 10 lakhs
  Cutting Tailoring for Cooperative Registered Societies	Rs. 20 lakhs
  Bakery Restaurants	Rs. 15 lakhs
  Beauty Parlours Boutique Grocery Manihari Other Retail Shops	Rs. 10 lakhs
  Coaching Institute Training Centre	Rs. 5 lakhs
  Herbal Products Industry Nurseries	Rs. 10 lakhs
  Paper Bags Paper Plates	Rs. 10 lakhs
  Bamboo-based Industry (Cane & Bamboo)	Rs. 10 lakhs
  Automobile Workshop. Garage. Car Spa	Rs. 10 lakhs
  Diagnostic Centres	Rs. 20 lakhs
  Film Industry. Film Auditorium (Mini size), including construction	Rs. 20 lakhs
  Any Other Project which the Committee deems to be fit for funding	Nominal funding

Important Links Available

• Application Form of Skilled Youth Startup Scheme Sikkim.
• Guidelines of Skilled Youth Startup Scheme Sikkim.
• Official Website of Commerce and Industries Department.

Contact Details in Case of Help Needed

• Contact Number of Skilled Youth Startup Scheme Sikkim :-
  • 9609876534.
  • 9775979806.
• Contact Number of Sikkim Department of Commerce and Industries :- 03592 202746.
• Contact Email of Sikkim Department of Commerce and Industries :- sikkimindustries@gmail.com.
• Address of Sikkim Department of Commerce and Industries :-
  Udyog Bhawan, Below Sikkim Press,
  Upper Tadong, Tadong, Gangtok,
  Sikkim – 737102.

Frequently Asked Questions

• What is the main objective of the Sikkim Government’s Skilled Youth Startup Scheme?
  -The main aim is to generate entrepreneurial opportunities for educated unemployed youth in rural and urban areas of Sikkim through financial assistance and skill training.
• Who is responsible for implementing the Skilled Youth Startup Scheme in Sikkim?
  -The Commerce and Industries Department of the Sikkim Government is the nodal department for implementing this scheme.
• What kind of subsidy is offered under the scheme?
  -The scheme offers back-end subsidies of up to Rs. 7 lakh, depending on category and project cost.
• Who qualifies for a 50% subsidy under the scheme?
  -Beneficiaries from the Below Poverty Line (BPL) category are eligible for a 50% subsidy on project cost.
• Can an applicant from a non-BPL category still receive subsidy?
  -Yes, non-BPL applicants are eligible for a 35% subsidy on project cost under the scheme.
• Is there a minimum contribution required from the applicant?
  -Yes, applicants are required to contribute 5% to 15% of the project cost themselves.
• What is the training requirement before the subsidy is released?
  -Beneficiaries must complete a 5-day Entrepreneur Development Programme or Skill Development Training under this scheme.
• Can online applications be submitted for this scheme?
  -No, applications must be submitted offline through the District Industries Centre (DIC) at Gangtok or Jorethang.
• Who is not eligible to apply under this scheme?
  -Children of government employees, defaulters of banks/financial institutions, and recipients of other startup schemes like PMEGP are ineligible to apply for this scheme.
• Is there a maximum family income limit for eligibility?
  -Yes, the annual family income should not exceed Rs. 8 lakh per year.
• Is a trade license mandatory for applicants?
  -Yes, applicants must possess a valid trade license for the intended business activity.
• How is the subsidy disbursed by the government?
  -After loan sanction and training, the subsidy is disbursed as a fixed deposit in the beneficiary’s name at the respective bank.

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