Money & Banking

Banks weighing Kerala govt's mission for entrepreneurs

Our Bureau Thiruvananthapuram | Updated on April 10, 2012 Published on April 10, 2012

The State-Level Bankers' Committee (SLBC) has approved provisions of a novel entrepreneurial development mission enunciated by the State government.

The Kerala State Self Entrepreneur Development Mission (KSSEDM) will now be placed for ratification and adoption, as per minutes of the 106th meeting of the SLBC.

NODAL AGENCY

Kerala Financial Corporation is the nodal agency for implementation of the scheme mooted by the Finance Minister, Mr K. M. Mani, in his budget speech.

Each micro enterprise set up under the mission will be entitled to financial assistance through banks and other agencies but capped at Rs 20 lakh.

Up to 90 per cent of the project cost will be financed in this manner, according to an SLBC spokesman. But no project has come up before it for consideration yet, he informed Business Line.

The entrepreneur mission is being sought to be implemented to address the twin issues of unemployment and flagging entrepreneurial spirit among the youth.

TWIN ISSUES

It involves identification and training of 50 such youth in each panchayat, municipality or corporation area of the State. They will be divided into 10 groups of five with an individual micro enterprise to work on at a given time.

Thus, ten micro enterprises will be set up in each of these localities during the five-year period ending in 2016 at the rate of two every year.

Each such unit will seek to employ an incremental five, over and above the five who have already promoted it.

Thus, the scheme is expected to result in cumulative job generation of 100 in each panchayat, municipality or corporation area.

‘PPPP' MODE

The scheme is sought to be implemented through what the Finance Minister called the public-private-panchayat-participation (PPPP) mode.

There are 991 panchayats, 60 municipalities and five corporations in the State, the spokesman said.

A back-of-the-envelope calculation projects employment opportunities of one lakh being generated in the State during the five-year period.

The mission is expected to result in distributed development through harnessing of local resources available at the rural level.

vinson@thehindu.co.in

Published on April 10, 2012
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