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KSP

Karma Sathi Prakalpa

The scheme aims to help young entrepreneurs in the state establish new manufacturing enterprises and small businesses, including those offering services and trading. The scheme offers soft loans and subsidies for new income-generating projects.

State Cash

States / UT: West Bengal

Nodal department: Micro, Small & Medium Enterprises and Textiles Department

Scheme for: Family

Scheme profile

DBT (direct benefit transfer): No

Categories: Skills & Employment

Sub-categories: Entrepreneurship development, Employment services and jobs

Target beneficiaries: Individual

Tags: Employment, Entrepreneur, West Bengal, Loan, Subsidy

Details

The scheme "Karma Sathi Prakalpa" by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, aims to help young entrepreneurs in the state set up new manufacturing enterprises and small businesses, including services and trading. The scheme provides soft loans and subsidies for new income-generating projects. This assistance is intended for young and enthusiastic entrepreneurs in both rural and urban areas of the state, helping them become self-reliant and create gainful self-employment opportunities. The scheme is implemented by the State-owned Cooperative Bank, which provides the loans on soft terms. It is monitored at the district level by an Additional District Magistrate and at the state level by the Director of MSME.

Objectives:

  1. To facilitate young entrepreneurs of the state in setting up new manufacturing enterprises and small businesses, including services and trading.
  2. To create gainful self-employment opportunities in both rural and urban areas of the state.

Benefits

  • The scheme provides financial assistance in the form of a soft loan and subsidies for new income-generating projects in manufacturing, service, and trading/business sectors. The total financial assistance available is up to ₹2,00,000/-. 1. Project Subsidy: A subsidy of 15% of the project cost is provided, with a maximum ceiling of ₹25,000/-.1. Interest Subsidy: This subsidy is paid to the entrepreneur on the annual interest they pay to the Cooperative Bank 50% of the interest is subsidised for timely repayment for a maximum period of 3 years 40% of the interest is subsidised for all other cases for a maximum period of 3 years. Mode of Disbursement: Bank Loan: The State-owned Cooperative Bank disburses 95% or 90% of the loan amount as Cash Credit in two installments
  • The first installment, which is 50% of the loan amount, is disbursed and linked to the applicant& 39;s Cash Credit Account
  • The second installment is disbursed after the bank receives a certificate confirming the utilization of the first installment. Subsidies:
  • Project Subsidy: Cooperative Banks submit claims for the project subsidy to the District MSME Facilitation Centre (MFC) on a quarterly basis. The MFC then sends a requisition to the Department, which releases the total subsidy amount to the West Bengal State Cooperative Bank Limited.- Interest Subsidy: The Chief Executive Officer of the West Bengal State Cooperative Bank submits a requisition for the interest subsidy on a half-yearly basis. The subsidy is then credited to the sanctioned and disbursed loan& 39;s Cash Credit account.- Disbursement for both subsidies happens through the portal, which is linked to the Integrated Financial Management System (IFMS). Validity:
  • The interest subsidy is provided for a maximum period of three years. If the bank agrees to a longer loan repayment period (e.g., 5 years), the government& 39;s interest subsidy will still be limited to 50% of the interest paid in the first three years

The scheme provides financial assistance in the form of a soft loan and subsidies for new income-generating projects in manufacturing, service, and trading/business sectors. The total financial assistance available is up to ₹2,00,000/-.

  1. Project Subsidy: A subsidy of 15% of the project cost is provided, with a maximum ceiling of ₹25,000/-.1. Interest Subsidy: This subsidy is paid to the entrepreneur on the annual interest they pay to the Cooperative Bank.
  • 50% of the interest is subsidised for timely repayment for a maximum period of 3 years.
  • 40% of the interest is subsidised for all other cases for a maximum period of 3 years.

Mode of Disbursement:

Bank Loan: The State-owned Cooperative Bank disburses 95% or 90% of the loan amount as Cash Credit in two installments.

  • The first installment, which is 50% of the loan amount, is disbursed and linked to the applicant's Cash Credit Account.
  • The second installment is disbursed after the bank receives a certificate confirming the utilization of the first installment.

Subsidies:

  • Project Subsidy: Cooperative Banks submit claims for the project subsidy to the District MSME Facilitation Centre (MFC) on a quarterly basis. The MFC then sends a requisition to the Department, which releases the total subsidy amount to the West Bengal State Cooperative Bank Limited.- Interest Subsidy: The Chief Executive Officer of the West Bengal State Cooperative Bank submits a requisition for the interest subsidy on a half-yearly basis. The subsidy is then credited to the sanctioned and disbursed loan's Cash Credit account.- Disbursement for both subsidies happens through the portal, which is linked to the Integrated Financial Management System (IFMS).

Validity:

  • The interest subsidy is provided for a maximum period of three years. If the bank agrees to a longer loan repayment period (e.g., 5 years), the government's interest subsidy will still be limited to 50% of the interest paid in the first three years.

Eligibility

  1. Any intending or, prospective entrepreneur fulfilling the conditions below can apply. Only one member of a family shall be eligible to apply under this Scheme, where "family" means parents and spouse.
  • Age: Any intending or prospective entrepreneur in the age group 18 - 50 years(from the date of notification, September 2020).- Educational Qualification: Minimum Class VIII passed. Preference will be given to intending entrepreneurs who are registered with the Employment Bank.- Any new income-generating activity taken up for self-employment in manufacturing, services, and trading will be eligible for assistance under the scheme.

Application Process

Offline

Manual Application Form :
The intended entrepreneur can get the prescribed Application Form (Annexure-I) for free from several offices. Or, the Application Form may be obtained free of cost at the following offices:

  1. Office of the Block Development Officer (BDO) in case the applicant resides in the rural area.
  2. Office of the Sub-Divisional Officer (SDO) in case the applicant resides in Municipal/Notified areas outside the areas of Kolkata Municipal Corporation.
  3. Kolkata Municipal Corporation (KMC) in case the applicant resides in the KMC area.
  4. MSME Facilitation Centre (MFC) of District Industries Centre (DIC) in the district.

Physical Application Form under the scheme shall be submitted to:-
The Block Development Officer in case the intended entrepreneur resides in the rural areas, the Office of the Sub-Divisional Officer in case the intended entrepreneur resides in Municipal/Notified areas outside the areas of Kolkata Municipal Corporation and the Kolkata Municipal Corporation in case the intending entrepreneur resides in KMC area. Application Forms may also be submitted directly at the MSME Facilitation Centre (MFC) of the District Industries Centre (DIC) in the district.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

What is Karma Sathi Prakalpa Scheme?
The Government of West Bengal has taken remarkable initiatives in employment generation for the promising youth through opening new doors to help intending or prospective entrepreneurs and make them self-dependent, those who are interested in new ventures. Employment generation is one of the thrust areas of the State Government and because of that Government of West Bengal has launched and announced the West Bengal Karma Sathi Prakalpa Scheme 2020.
Who are the beneficieries under the scheme?
Any intending or, prospective entrepreneur fulfilling the conditions below can apply. Only one member from a family shall be eligible to apply under this Scheme where "family" means parents and spouse. 1. Age: Any intending or prospective entrepreneur in the age group 18 - 50 years(from the date of Notification - Dt. 9th September 2020). 2. Educational Qualification: Minimum Class VIII passed. Preference will be given to intending entrepreneurs who are registered with the Employment Bank. 3. Any new income-generating activity taken up for self-employment in manufacturing, services, and trading will be eligible for assistance under the scheme.
Who will register through this online system?
Any interesting resident of West Bengal with new income-generating activity taken up for self-employment, age between 18-50 and class VII pass as minimum educational qualification can register through this online portal.
Is there any age criteria?
Yes, any intending or prospective entrepreneur in the age group 18 - 50 years. (from the date of Notification - Dt. 9th September 2020).
What are mandatory information required to fill up during form submission? Or Documents required.
The following information are required to fill up during form submission- Applicant Full Name, Father's / Mother's / Guardian's Name, Applicant Date of Birth, Gender, Full Address for communication and project location, Education Qualification, Applicant Category (SC/ST/PHC/OBC/Minority/General), Project Name, Project Cost, Co-operative Bank Name & Address. Supporting Documents Required to upload for application form submission - Proof of Photo identity of the applicant, Proof of Residence, Educational Qualification Certificate, Detailed Project Report, Recent Passport Size Photograph and Applicant Signature.
Is there any requirement for the submission of fees for online registration?
No, there is no requirement for the submission of fees for online registration.
How to check the status of the Submitted Application?
After successfully logged in, the Applicant can see a link "Details" on the Dashboard of the scheme portal. Click on the "Details" link. An applicant can view the application status after successful submission of online application form.
Can the user apply with more than one application with the same user login credential in this portal?
No, there is no provision to apply more than one application with the same user login credential in this portal.

References

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Documents Required for Government Schemes

Most government schemes require basic documents for verification. While the exact requirements vary, common documents include:

  • Aadhaar Card
  • Income Certificate
  • Caste Certificate (if applicable)
  • Residence Proof
  • Bank Account Details
  • Educational Certificates (for student schemes)

How to Apply for Government Schemes?

The application process for government schemes may be online or offline depending on the scheme. In most cases, you can follow these steps:

  1. Check eligibility criteria
  2. Collect required documents
  3. Fill the application form
  4. Submit the application online or at the relevant office
  5. Track application status