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SWAMI VIVEKANANDA ASSAM YOUTH EMPOWERMENT (SVAYEM) YOJANA

SWAMI VIVEKANANDA ASSAM YOUTH EMPOWERMENT (SVAYEM) YOJANA  
1. Background

Swami Vivekananda Assam Youth Empowerment (SVAYEM) Yojana announced by the 
Hon’ble Finance Minister of Assam in his budget speech on 7th February, 2017, is a 
flagship program to provide financial support to the youths of Assam to take up income 
generating activities in the manufacturing, trading and service sector.

2. Objectives
a. To generate employment opportunities in rural as well as urban areas through 
setting up of new ventures as well as growing existing ventures.
b. To provide financial assistance to micro and small business entities engaged in the 
manufacturing, trading and services sector.
c. To provide financial assistance for enhancement of income level of traditional 
artisans ensuring sustainable growth.

3. Area of implementation
All districts of Assam including autonomous district councils

4. Coverage and targeted group
a. About One lakh youth of Assam will be provided suitable credit support for 
taking up income generating enterprises.
b. The number of beneficiaries will be selected in a district in proportion to the 
population.

5. Nature of activities
a. Manufacturing
b. Processing
c. Service Sector
d. Trading
e. Rural Transport Service (Auto Rickshaw, e-Rickshaw)
f. Tourism
g. Shops, repairing Centres, Handicraft, Cottage Industries etc.

6. Negative list of activities
a. Manufacturing of intoxicant items
b. Beedi, Panmasala, Cigarette, etc.
c. Sales outlet of Liquor
d. Plastic bags below 40 microns

7. Eligibility criteria for the beneficiary
a. Residents of Assam above 18 years of age.
b. There will be no income ceiling for getting assistance under this scheme.
c. The individual beneficiary should have skills, experiences, knowledge, etc., to 
undertake the income generating activities.
d. The beneficiary should possess educational qualification of at least Class VII 
standard.
e. The beneficiary who has already completed Skill Development Training will be 
given preference.
f. The beneficiary must not be the defaulter of any loan. If information submitted 
by the beneficiary is found to be incorrect later, action would be taken against 
the beneficiary including cancellation of loan, recovery of amount as Bakijai and 
also blacklisting for future benefit under any Govt. Scheme.
g. PMEGP beneficiaries of the last 5 years will not be eligible under the scheme. 

8. Quantum and nature of financial assistance
a. (i) The State Government through State Level Bankers Committee would request 
all Public Sector/Private Sector/Regional Rural Banks to provide financial 
assistance under this scheme.
(ii) The quantum of assistance would be up to Rupees One lakh for new 
entrepreneurs and up to Rupees two lakh for existing entrepreneurs. 
Beneficiary contribution will be maximum of 25% of the total project cost.
Banks will be free to sanction loans above the quantum specified above 
but subsidy as reflected herein below, will be limited to 20% of sanctioned 
limit subject to INR 20,000 for new entrepreneurs and 40% of sanctioned 
limit subject to INR 40,000 for existing entrepreneur. In brief, for an amount 
of Rs 1,00,000/- sanctioned as loan for a total project cost, Rs 25,000/- shall 
be beneficiary’s own contribution, Rs 20,000/- the subsidy to be disbursed 
and Rs 55,000/- shall be the loan amount from the Banks. The extent of 
Government Subsidy shall be as follows :
Category  
New Entrepreneur
Subsidy percentage
20%
Qualifying amount
 Upto Rs 1,00,000
Remarks
 Max subject to Rs 20,000/-

Category 
Existing Entrepreneur
Subsidy percentage
20% 
Qualifying amount
Upto Rs 2,00,000 
Remarks
Max subject to Rs 40,000/-
(iii) An amount of Rs 200 Crores shall be allocated and utilized for this purpose

9. Institutional and implementing arrangement
a. Industries and Commerce Department will be the nodal department and District 
Industries and Commerce Centre (DICC) will implement the scheme in the field.
b. All public sector, private sector and Regional Rural Banks will be the lending 
agency and shall execute a formal MOU for the implementation modalities of 
the scheme.

10. Bank finance
a. Bank will sanction 55% of the project cost under this scheme after loan 
application evaluation. Bank will finance capital expenditure in the form of Term 
Loan and working capital in the form of cash credit. Project can also be 
financed by the bank in the form of composite loan consisting of capital 
Expenditure and working capital.
b. The Beneficiary will deposit with the bank the owner’s contribution of 25% of the 
project cost after sanction of loan.
c. The bank to claim the applicable subsidy for the entire sanctioned amount and 
after receipt of subsidy will release the loan amount. The loans are to be 
disbursed in one lumpsum.
d. The Nodal Bank will release the Margin Money/Subsidy in proportion to the 
disbursement of the sanctioned loan amount directly to the financing bank 
branch through the beneficiary’s loan account.
e. The State Government shall earmark initially an amount of Rs 100 Crores 
exclusively for the credit risk guarantee cover for all SVAYEM Loans extended.
Banks can avail of credit risk coverage from this fund after exhausting all options 
for recovery, with approval from the State Level committee on recommendation 
of the district level committee for loans that have turned bad. This credit risk 
guarantee is exclusive to SVAYEM loans and shall be available to all participant 
banks and in case of any additional requirements shall be replenished by 
requisite budgetary support. The basic emphasis is to allow banks to aggressively 
follow the SVAYEM guidelines and sanction of loans thereof. The credit 
guarantee should be 55% of the total dues as on the date of the account turning 
NPA, subject to a maximum of Rs 60,500/-.
f. For extending guarantee coverage of these SVAYEM loans under Credit 
Guarantee Trustee Fund for Micro Units (CGFMU) from next financial year, the 
State Government will take up with SIDBI. Till CGFMU cover is made available, 
State Government shall ensure adequate budgetary support for the same.

11. Interest rate and repayment schedule
a. Interest rates are to be charged by the bank as per RBI guidelines for MSE units.
b. Repayment schedule may range between 3 to 7 years after an initial moratorium 
as may be prescribed by the bank/Financial Institution concerned.

12. Processing fees
There will be no processing fees for the applicant.

13. Security
a. Hypothecation will be allowed of Plant & machinery, Miscellaneous Fixed Assets 
and other assets created out of loan.
b. Hypothecation of Current Assets will also be allowed (Raw material Stock, Semi-
finished products, finished products, etc.)
c. There shall be no liquid security against the loan. 

14. Procedure for submission of application, approval, sanction and disbursement
a. Project proposals will be invited from beneficiaries at District level through 
advertisement.
b. Application for the financial assistance under the scheme will be received online 
in the format as given in Annexure-I. Supporting documents need to be 
uploaded online also.
c. On receipt of online application General Manager, DICC will scrutinize them and 
forward to the District Level Committee (DLC) for approval.
d. District Level Committee will examine the application and recommend to the 
bank for consideration online.
e. Bank will take their credit decision on the basis of viability of each project. They 
will apprise the project both Technically and Economically with the approved 
project cost of DICC and will accordingly issue sanction of the proposal within 30 
days.
f. After sanction of the proposals by the Bank, the loan will be released, normally,
within five (5) working days after deposit of promoter contribution by the 
beneficiary and receipt of subsidy claim, whichever is later.
g. Upon sanctioning of the loan, Bank will submit the Margin Money Subsidy 
proposal against the borrowers to a Nodal Bank approved by the Government 
of Assam. A MOU will be executed by the Finance Department with the Nodal 
Bank for release of the Margin money amount to the Financing Bank Branch. 
h. Bank will update the status on online MIS system of the scheme.

15. District Level Committee (DLC)
The District level committee shall be as follows:
1 Deputy Commissioner- Chairman
2 Lead Bank Manager- Member
3 Bank Branch Manager of the district -Member
4 Representative from the MSME-DI -Member
5 Any other member may be opted by the 
Chairman -Member
6 General Manager, DI&CC of the district Member -Secretary

The major functions of the DLC shall be:
a. The Committee shall meet as and when necessary.
b. The Committee shall examine the application(s) and also approve the list of 
beneficiaries for providing grant under the scheme.
c. The members of the committee will suggest remedial measures for any difficulty 
faced while selecting the beneficiaries.
d. The Member Secretary will circulate the list of beneficiaries to all the Members of 
Legislative Assembly of the district of information.
e. Bank Branch wise target will be approved by the DLC.
f. The Target among the Districts in the State will also be intimated for appraisal of 
the State Level Bankers Co-ordination Committee.
g. The Committee may organize ceremonial distribution of the loan.
h. The Committee will review and monitor the proper and effective implementation 
of the scheme.
i. The District Level Committee shall also be the recommending authority for the 
claim of the banks in case of loan default to avail of the credit risk coverage 
provisioned for under the credit risk fund of Rs 100 Crores with the nodal bank.

16. Project Management Unit (PMU)
For effective implementation, monitoring, supervision of the scheme, a Project 
Management Unit (PMU) will be set up in the Office of the Commissioner, Industries & 
Commerce. PMU will be headed by one Senior Officer. One IT Officer and one Data
Entry Operator will be engaged to support the PMU. Remuneration, eligibility, criteria, 
qualification and experience of IT Officer and DEO will be decided by the 
Commissioner, Industries & Commerce. They will be engaged for a period of one year 
which will be extended yearly if their services are found to be satisfactory and the 
scheme continues. They will be released on the closure of the scheme. Regular 
inspection, field visit, monitoring, assessment and supervision of the scheme will be 
coordinated and organized through the PMU. The PMU shall also screen all the 
applications recommended by the District Level committees for the claim of the bank 
for bad loans or loan defaults which shall be submitted for the claim of the credit risk 
guarantee fund.

17. Administrative Expenses
0.50% of the total cost of the project will be earmarked for Administrative expenses 
which will be kept in a separate account to be maintained by Commissioner, Industries 
and commerce. General Managers will also be given contingency fund to organize 
and carry out different activities including training, processing of application, 
implementation of the scheme, supervision, monitoring, field visit, reporting, etc. Out of 
the administrative expenditure, web portal for online management of scheme, Mobile 
application, etc. may also be developed and Stationery, office expenditure, etc. may 
also be arranged for PMU.
18. SVAYEM Portal
A dedicated Portal in the name of SVAYEM will be designed and developed by 
the Industries and Commerce Department. All the applications under this scheme will 
be received online through this Portal. Monitoring, Supervision, inspection, field visit 
report, photographs and other details would be uploaded on SVAYEM Portal. Regular 
reports will be generated and information related to the schemes including status of the 
individual applications will be provided online to the beneficiaries. Desk board will be 
provided to Banks, Finance Department, PMU, etc. for smooth monitoring of processes 
in implementation.
19. The state level committee
The state level committee shall be as follows :
1.Senior most Secretary to the Government of 
Assam, Industries and Commerce Department -Chairman
2Commissioner & Secretary to the Government 
of Assam, Finance Department- Member
3Commissioner of Industries and Commerce, 
Government of Assam -Member
4 Director, MSME-DI, Guwahati- Member
5Nodal Officer of Representative of State Nodal Banks.- Member
6Additional Director of Industries and 
Commerce Department, Government of 
Assam-Member Secretary
Other members may also be co-opted by the Chairman
The major functions for the State level committee shall be:
a. The Committee shall meet as and when necessary.
b. The Committee will guide the district teams for effective implementation of the 
scheme.
c. The committee may organize field visit and inspection.
d. The Committee shall examine the progress and review the implementation of the 
Scheme.
e. The members of the committee shall look into the suggestions given by the DLC 
on remedial measures.
f. The State Level committee shall be the final authority to accept and approve all 
the claims submitted from the banks for availing the credit risk guarantee fund 
for bad loans/ default loans.
g. Both Pre-sanction and Post -sanction inspection shall be conducted jointly by 
officials of the Bank and District Level Committee (DLC).

20. Monthly Reporting System
The General Manager, DICC shall send report online to the PMU on or before 7thof every 
month

21. Field Visit and physical Inspection.
The general Manager, DICC and Bank concerned shall make regular field visits to assess 
the status of the units financed. In case of failure to implement or willful default, 
immediate action shall be taken as per norms and rules.

22. Amendment/Modification, etc. in the scheme
The State Government (the Industries and Commerce Department) may amend 
any provision(s) or withdraw any provision(s) of the scheme as and when necessary in 
the interest of the general public.
Documents to be attached.
(The list is only indicative and not exhaustive and depending upon the local 
requirements at different places addition could be made as per necessity)
1. Proof of identity - Self certified copy of Voter’s ID card / Driving License / PAN 
Card /Aadhar Card/Passport.
2. Proof of Identity / Address of the Business Enterprise - Copies of relevant 
licenses/registration certificates/other documents pertaining to the ownership, 
identity and address of business unit.
3. Project report (for the proposed project) containing details of technical & 
economic viability.

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