Shillong, Nov. 18: Khadi Village Industries Commission (KVIC) in collaboration with the Meghalaya Khadi and Village Industries Board (MKVIB) has been trying to promote Margin Money, a scheme launched to help the youth set up their own industry. In the process, it helps develop traditional village industries in addition to training the youth at its various multi-disciplinary training centres.

The eligible borrowers are supposed to prepare a project report in which they can avail of 30 per cent margin money for a project of upto Rs 10 lakh, and 10 per cent margin money for a project upto the ceiling of Rs 25 lakh. According to M.M. Syiemlieh, chief executive officer of MKVIB, the report can be submitted to MKVIB or KVIC for approval, following which it is sent to any of the nationalised banks for loan sanction.

“Once the bank agrees to pay a loan for the beneficiary’s project, the 30 per cent loan from the MKVIB Margin Money Scheme will be sent to the bank directly as a kind of safety deposit. In case of default of any payment, the loan taken by the beneficiary will be adjusted from the Margin Money Scheme. The beneficiary will also have to make a five per cent contribution towards his project. Should he be able to pay his loans on time, the margin money will be his to enjoy,” explains Syiemlieh. Once the entrepreneur gets registered with the District Industry Centre, he is also entitled to a 15 per cent subsidy on electricity bills from the state government.

The main objective of the scheme — first introduced in 1996-97 — is to provide employment to rural unemployed youths and build up a strong rural economic base.

The scheme is meant specially for those youths between the 18-35 age group with some knowledge of English so as to grasp technical terminology. Their inability to prepare a project report is certainly not a handicap. MKVIB/District Industrial Centres/Small Industries Service Institute will provide the youths with the requisite support and knowhow. There is no bar on the beneficiary’s qualification.

Currently, the board has been providing financial assistance to beneficiaries in the field of tailoring and embroidery, leather goods, soap manufacturing, electronic goods, paper conversion, carpentry, motor repairing, bakery units and steel fabrication.

It has also sponsored candidates to KVIC’s training-centres for artisan training courses and supervisory managerial courses in various khadi and village industries.

The Margin Money scheme has had a success story in A.K. Mawlong, an entrepreneur who runs his own industrial organic-manure unit with an annual turnover of over Rs 10 lakh.

The board’s efforts to spread awareness through district-level workshops, booklets, hoarding and seminars at Nongstoin, Jowai, Nongpoh and Williamnagar have not boosted Margin Money Scheme’s prospects. “Many people are reluctant to avail of the scheme’s facilities. It is as if they have a mental block against taking loans to start their own units,” said Syiemlieh.