Rajiv Gandhi Swavlamban Rojgar Yojna

Rajiv Gandhi Swavlamban Rojgar Yojna

The Rajiv Gandhi Swavlamban Rojgar Yojna, implemented by the Delhi Khadi & Village Industries Board in collaboration with the Government of NCT of Delhi, aims to create employment opportunities for various segments of society. This initiative primarily targets unemployed youth, artisans, trained professionals, skilled technocrats, and entrepreneurs, facilitating the growth of permissible industries and service sectors within the National Capital Territory (NCT) of Delhi.

Overview of the Scheme

The Rajiv Gandhi Swavlamban Rojgar Yojna is crafted to provide financial support through loans for eligible projects across various sectors, including:

• Secondary Sector (Tiny/Cottage Industries)
• Tertiary Sector (Trade, Transportation, Hostels, Restaurants without Liquor and Meat, etc.)
• Services Sector (within the framework of local bodies and the Delhi Master Plan)

Loan Tenure and Repayment

Loans provided under this scheme need to be repaid within five years in equal quarterly installments. The repayment will commence after a grace period of 12 months from the loan disbursement date. However, interest on the disbursed amount will start accruing from the first quarter. To ensure timely repayments, borrowers must submit an equal number of post-dated cheques for the quarterly installments, including interest.

In case of default, the Delhi Khadi & Village Industries Board reserves the right to take necessary legal actions against the borrower or their sureties as per the law.

Interest Rates

The interest rate on loans under this scheme is determined by the Government of NCT of Delhi and is applicable from the loan disbursement date. If the loan is disbursed in multiple installments, interest will accrue on each installment from its respective disbursement date. There is no provision for interest subsidy.

Utilization of the Loan

Borrowers are required to utilize the loan for its specified purpose within three months. The Managing Director of the DKVI Board can grant an extension of up to three months for utilization. If the funds are not utilized within the maximum permissible period, the loan will be considered misused, and the entire amount will be recoverable at an interest rate of 18% as prescribed by the Delhi Government.

Any misuse of the loan as per the scheme’s provisions will also incur recovery actions at the same interest rate.

Loan Security

Applicants must provide a surety or security from a government employee, who can be from the Government of National Capital Territory of Delhi (GNCTD) or its autonomous bodies, or a Central Government employee working in Delhi.

Implementation Area

The Rajiv Gandhi Swavlamban Rojgar Yojna permits the establishment of industrial or professional units in any area under the jurisdiction of the Government of NCT of Delhi. For projects in residential or non-conforming areas, only those professional or industrial activities allowed under the Delhi Master Plan will be financed. Applicants must also obtain a No Objection Certificate from the High Power Committee and a Municipal Corporation License (MCL) for the respective industry.

Skill Development Focus

This scheme aims to harness the potential of school and college dropouts by emphasizing skill development and enhancement. The primary objectives include:

• Skill formation
• Basic bookkeeping knowledge
• Fundamentals of marketing
• Understanding product costing
• Familiarity with project financing from banks and financial institutions

Marketing Support

Beneficiaries receiving financial assistance through this scheme will be offered marketing support, which includes:

• Display of products at the Delhi Emporium, subject to space availability
• Collaboration with DSIIDC/Cooperative Stores for product marketing under their brand name
• Opportunities to participate in trade fairs and exhibitions organized by the Board or other government bodies
• Issuance of certificates to enhance market recognition for beneficiary units

Benefits

The scheme allows for a loan of up to ₹3,00,000 for proposed and existing units. Additionally, the Government of Delhi offers a subsidy of 15% on project costs, with a maximum cap of ₹7,500 per entrepreneur.

• Note 1: Entrepreneurs are required to contribute a minimum of 10% of the loan amount requested from the DKVIB.
• Note 2: For individuals from weaker sections (SC/ST/OBC/PH/Women/Ex-Servicemen), only a 5% contribution is necessary.
• Note 3: In cases where multiple entrepreneurs collaborate on a project, the subsidy will be calculated individually based on each partner’s share, limited to ₹7,500 per partner.

Application Process

To apply for the Rajiv Gandhi Swavlamban Rojgar Yojna, follow these steps:

• Step 1: Submit the application form along with relevant documents directly at the Board’s office.
• Step 2: The loan application form can be downloaded from the official website of the Board.
• Step 3: Fill in all mandatory details and submit the form with the necessary documents.
• Step 4: Upon successful verification, the applicant will be eligible for the scheme benefits.

Note: The ADO/Nodal Officer of RGSRY will be available daily for inquiries regarding the scheme at the Board office. Applications will be processed on a first-come, first-served basis.