Some of the industries under INR 25.00 lakh

Posted by on Jan 19, 2011 in EPM World, Government Schemes, Self-employment, Start-up business | 25 comments

We have thousands of business opportunities to explore.  However, any given opportunity has to be judged against the following aspects (not exclusive) before an investment is made.

  • Experience of the promoter in the line
  • Availability of expertise at the promoter’s reach
  • Business gestation time i.e. time it would require to start commercial operations
  • Proposed place of business and its relevance in the geography
  • Required Investment
  • Required rate of return
  • Market scope and capabilities to market the product or service
  • Government support (Loan /subsidy / Incentives / Tech support / Marketing support)
  • Opportunity to grow and expand
  • Competitor’s performance
  • Market sensitivities with respect to pricing, technology, grade and quality.
  • Commercial viability

Notwithstanding the above, I have compiled the list of some industries within the scope of INR 25.00 lakhs around.

Investment INR 25.00 lakh

Small Scale Industry

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Benefits to MSE sector in Andhra Pradesh

Posted by on Jan 17, 2011 in Business, EPM World, Government Schemes, Self-employment, Start-up business | 0 comments

Government of Andhra Pradesh through its Industrial Investment Promotion Policy (IIPP 2010-2015) has provided several incentives for Micro, Small and Medium Enterprises.  The provisions read along with the PMEGP and CGF schemes will help new entrepreneurs realize their dreams to gain self employment.  I have tried to compile the benefits.  May please visit http://www.industries.apcgg.gov.in for more information or raise your query herein so that I will try to attend to it to help you setting up your own business.

Incentives to setup business in AP

Business Guide

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Prime Minister Employment Generation Program

Posted by on Jan 7, 2011 in EPM World, Government Schemes | 34 comments

The following are the details of financial assistance available under PMEGP.

Industry Eligible loan Promoters equity Subsidy Loan given by Security
Manufacturing INR 25.00 lakhs General Category:

10%

Special (including SC / ST /
OBC /Minorities/Women, Exservicemen,
Physically
handicapped, NER, Hill and
Border areas etc:

5%

General Category

Urban : 15%

Rural: 25%

Special (including SC / ST /
OBC /Minorities/Women, Exservicemen,
Physically
handicapped, NER, Hill and
Border areas etc.

Urban : 25%

Rural: 35%

Any Public Sector Bank or Private Scheduled Bank at their discretion based on the project viability. Nil up to INR 5.00 lakhs

Covered under CGF above INR 5.00 lakh and up to INR 1.00 crore.

Under CGF no security required up to INR 1.00 crore.

Banks at time might demand depending upon the merits and demerits of the project.

Service INR 10.00 lakhs

Required enclosures along with application:

  1. Project report of the activity
  2. Attested copy of OBC / ST / Minority / PHC / Ex-servicemen certificate.
  3. Attested copy of the educational qualification, experience, training certificate if any.
  4. Attested copy of EDP training [for a minimum period of 2 weeks] certificate, if any.
  5. Affidavit in bond paper costing Rs. 15/-
  6. Consent letter from Bank, if available.
  7. No objection from Gram Panchayat, if applicable

The procedure:

  • All the loan applications received under PMEGP scheme will be  placed before the District Level Task Force Committee [DTFC] under the Chairmanship of the Deputy Commissioner of the concerned District from time to time.
  • The DTFC is conducts personal interview of the applicants and recommends the deserving cases on the basis of the viability of the project to the concerned banks.
  • The recommended cases will be sponsored to the concerned banks for consideration of finance under the captioned scheme.
  • The bank will sanction 90% of the project cost in case of General category and 95% of the project cost in case of Special category of beneficiary / institution and recommend their cases to the KVIB for arranging 2 weeks duration compulsory EDP training.
  • KVIB will arrange EDP training. Once the beneficiary undergone EDP training, the bank will disburse full amount suitably for setting up of project.
  • Once the 1st installment of bank finance is released, the bank will submit margin money claim in the prescribed proforma [which is 25% of the project cost in case of General category and 35% of the project cost in case of Special category] to the designated Nodal Banks.
  • Once the margin money is released in favor of the loanee, it should be kept in the term deposit receipt of 3 years at branch level in the name of the beneficiary / institution. During this period, no interest will be paid on the TDR and no interest will be charged on loan to the corresponding amount of the TDR.
  • The margin money component [back ended subsidy] will be credited to the borrowers loan account after 3 years on the basis of 100% Physical Verification Report of the said unit.
  • 100% Physical Verification of the actual establishment and working status of the units, setup under PMEGP will be done by KVIC.

May also check for Credit Guarantee Fund scheme details in the other posting.

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