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DIC schemes

There are numerous schemes implemented by various State Government Departments/Corporations such as Social Justice Department, Mahatma Phule Scheduled Caste Development Corporation, Vasantrao Naik VJ/NT Development Corporation, etc. Besides these departments, the Directorate of Industries through its District Industries Centres at District Level and Joint Director of Industries, Mumbai Metropoliton Region at Mumbai, implements Prime Minister’s Employment Generation Programme (PMEGP), Seed Money Scheme and District Industries Centre Loan Scheme for unemployed youth.

There are mainly three schemes viz. PMEGP, Seed Money Scheme and District Industries Loan Scheme implemented by Directorate of Industries for unemployed youth. The brief features of these schemes are described below :-
A) PMEGP
Coverage :
Industry projects upto Rs. 25 lakh investment and service/business projects upto Rs. 10 lakh investment are eligible under the scheme. Project cost will include fixed capital (excluding land cost)plus working capital.
Extent of assistance :
90% loan for general group and 95% for special group will be available from public sector banks, Regional rural banks, IDBI. In urban areas, 15% margin money subsidy for general group and 25% for special group will be available through KVIC. In rural areas, the margin money subsidy will be 25% to 35% respectively. Special group include SC/ST/OBC/minority/woman/ex-servicemen/physically handicapped.
1. Eligibility :
1. Any individual, above 18 years of age
2. For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business/service sector, the beneficiaries should have at least VIII standard pass educational qualification.
3. Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.
4. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.
5. Institutions registered under Societies Registration Act,1860;
6. Production Co-operative Societies, and Charitable Trusts.
7. Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.
2. Implementing Agencies :
In urban areas, the scheme will be implemented through DIC, while in rural areas through KVIC/KVIB/DIC all three agencies.
B) Seed Money Scheme (SMS)
1. The objective of the scheme is to encourage unemployed person to take up self-employment ventures through industry, service and business, by providing soft loans to meet part of the margin money to avail institutional finance.
2. Eligibility :
Local unemployed person or group of persons fulfilling:
1. Age Group: 18 to 50 years
2. Qualification: Std. VII pass
3. Domiciled in the state of Maharashtra for the last 15 years.
3. Scope
1. Project cost upto Rs. 25 lakhs for industry, service and business activity.
2. Seed Money assistance at 15 per cent of the project cost approved by financial institutions is offered. In case of projects costing up to Rs. 10 lakhs, the quantum of assistance ranges upto 15 per cent for General category and 20% for SC/ST and OBC/NT/VT/Handicapped upto 20 per cent.
3. Seed Money component up to 3.75 lakhs maximum.
4. Bank loan 75% of the project cost.
5. The rate of interest on seed money is 6% and if the borrower pays the repayment of installment regularly and within scheduled time, then the borrower will get rebate of 3% in interest. So he has to pay only 3% interest.
6. If the installment is not repaid in time, it will attract 1% penal interest.
7. The repayment of loan starts after three years in four yearly installments for industry cases. In other cases repayment starts after six months of loan availment
C) DISTRICT INDUSTRIES CENTRE LOAN SCHEME :
1. The objective of the scheme is to provide financial assistance in the form of margin/seed money for the promotion of tiny industries in semi-urban and rural areas with a view to generate employment opportunities including self employment.
2. Margin money assistance is admissible only to those units whose investment in plant & machinery does not exceed Rs. 2 lakh.
3. All towns and rural areas having population of less than 1 lac are covered under the Scheme.
4. The extent of assistance is 20 % of the total investment or Rs. 40000/- whichever is less in case of entrepreneur belonging to general category and in case of entrepreneur belonging to scheduled caste & scheduled tribe, assistance upto 30 % of total fixed capital investment or upto maximum of Rs. 60000/- which ever is less is provided.
5. All units falling within the purview of the Small Scale Industries Board and Village Industries, handicrafts, handlooms, Silk & Coir Industries are covered under the Scheme.
6. The State Government’s rate of interest on this loan is 4 % and repayment is to be done within 7 years.
7. This scheme is particularly useful for rural artisans
At district level, these schemes are implemented by General Manager, District Industries Centre of respective district (PMEGP scheme is also implemented by KVIB & KVIC in rural areas). In Mumbai, PMEGP & Seed Money Scheme (excluding DIC loan scheme) isimplemented by Joint Director of Industries, Mumbai Metropoliton Region, Mumbai.
So far as DIC/ Joint Director of Industries, Mumbai Metropoliton Region, Mumbai is concerned, no collateral security is insisted. However, in case of Seed Money Scheme and District Industries Centre Loan Scheme, second charge is to be created on the assets created.
There is one scheme called Entrepreneurship Development and Training Programme which is implemented by Directorate of Industries through recognized Training Institutions such as MITCON Consultancy Services Ltd. and Maharashtra Centre for Entrepreneurship Development (MCED). Under this scheme, the aspects such as the Entrepreneurship Development and Technical Training are covered.