Scheme Guidelines For

SCHEME GUIDELINES FOR

RAJIV GANDHI SWAVLAMBAN ROZGAR YOJNA (MODIFIED SCHEME GUIDELINES)

Introduction

Rajiv Gandhi Swavlamban Rozgar Yojna has been designed, developed and promoted by the Delhi Khadi & Village Industries Board, with the help of Government of NCT of Delhi, to provide the employment opportunities to the unemployed youths, artisans, trained professionals, skilled technocrats and entrepreneurs by promotion/expansion of permissible industries, professions, tertiary and service sector in the UT of Delhi.

1. Eligibility

Any one of the following can avail loan under the scheme: - a) School/College dropouts above the age of 18 years. b) Individual entrepreneur. c) Trade Professionals. d) Artisan e) Small-Scale Industrial units which have total investment of plant, machinery and equipment not exceeding the ceiling prescribed for small scale units by the Central Government from time to time and must be located within the National Capital Territory of Delhi, shall also become eligible for financial aid of loan. f) Passed out candidates from any technical/professional institute recognized by the Government or its authorized undertakings, without further training. 2. Jurisdiction, Purpose and Quantum of Assistance:-

(1) Financial aid as loan under these rules may be granted to the eligible projects pertains to any of the following groups/sector:- i) Secondary Sector (Tiny/Cottage Industries) ii) Tertiary Sector (Trade, Transportation, Hostels, Restaurants without Liquor and Meat etc.) iii)Services Sector: (Under the ambit of various Terms & Conditions, provisions of local bodies and Delhi Master Plan.) 3. Quantum of Loan: -

(i) The quantum of loan granted under this scheme, to proposed and functioning units shall not exceed Rs. 3,00,000 provided that concerned entrepreneur shall make at least 10% contribution of amount demanded as loan from the DKVIB. In case of weaker sections i.e. SC/ST/OBC/Ph. H. /Women/Ex. Servicemen, only 5% contribution of entrepreneur is required. (ii) Loan shall not be sanctioned to such parties who have already been advanced any loan for the same or similar purpose by the Government or any Government controlled financial institutions and has not been repaid in full with interest or has been mis-utilized and/or misapplied. 4. Subsidy

Govt. of Delhi would provide subsidy @ 15% of the project cost subject to the ceiling of Rs. 7,500.00 per entrepreneur. In case of more than one entrepreneur joining together and setting up a project under partnership, subsidy would be calculated for each partner separately, @15% of his share in the project cost, limited to Rs. 7,500.00 each partner. Subsidy component would be adjusted to the borrower’s loan account after a period of two years from the date of disbursement of loan. Subsidy component would be recovered from the borrower along with 18 % penal interest in cases where the loan amount has been found not utilized for the purpose for which it was released.

5. Tenure of loans and Repayment

(i) Every loan with interest thereon shall be repaid in full within 5 years in equal quarterly installments. The recovery of loan may be started after a gap of 12 months from the date of release of loan amount. However, interest on released amount will be recoverable form the first quarter, from the date of release of loan amount. To ensure timely recovery, borrower shall provide equal nos. of post dated cheques for quarterly installments of Principle amount including interest due as on date of installment fixed by the Board. The borrower can also opt for Electronics Clarence Service (ECS) for the payment of installments of Board, in lieu of PD cheques. (ii) The Borrower shall ensure for timely encashment of each and every cheque. In case of any default, DKVI Board will be entitled to take action against him / her and/or sureties as prescribed under the law. (iii) The borrower shall be bound to confirm the loan balance within one month after expiry of each financial year. (iv) The borrower would also provide one self signed, undated cheque for the total released amount to the Board. In case of non-utilization/non- payment of loan amount, the Board will have right to accredit this cheque for the realization of its loan amounts, including interest due thereon.

6. Rate of interest

The loan granted under this scheme shall bear interest as prescribed by the Govt. of NCT of Delhi from time to time. The interest on loan will accrue from the date of its disbursement and where the loan is disbursed in installments, interest shall run on each installment from the date of disbursement of such installment. No interest subsidy. The present rate of interest is 10.00% pa.

7. Utilisation of Loan:-

(i) The borrower shall utilize the loan for the specific purpose for which it is advanced within three months. However, Managing Director of the DKVI Board will be competent to grant maximum three months grace for the utlisation of amount released by the DKVI Board. After six months, no further concession will be allowed and in case of non- utilisation of funds within the maximum permissible period, loan amount will be treated as mis-utilized and DKVI Board will make recovery of entire amount alongwith 18% interest or as prescribed from time to time by Delhi Govt, in addition to the amount of loan provided by the DKVI Board.

(ii) If the borrower utilizes the financial assistance received from the DKVI Board in violation of the provisions of these loan rules or instructions of the DKVI Board, the amout of loan shall be treated as mis-utilised and shall invite interest @18% along with principal amount may be recovered. 8. Security of Loan: - i) All applicants to whom loans are sanctioned shall furnish adequate and suitable surety (ies)/security for loan and shall satisfy the DKVI Board regarding the title and valuation of security of surety (ies) offered by them and solvency of the surety of guarantor with necessary documents supporting the same and to be furnished and executed as the DKVI Board may prescribe or form guidelines from time to time.

9. Training : -

Since the scheme envisages conversion of energy of school dropouts or those who have not gone beyond school education as well as of college dropouts, emphasis would be on skill formation/enhancement of the selected candidates selected by the Board. The primary purpose of imparting skills to the candidates is for enabling them to take up self- employment. The focus, therefore, will be on skill formation and entrepreneur development, basic component of which would be: -

i. Skill formation. ii. Elements of book keeping. iii. Simple knowledge of marketing. iv. Acquaintance with product costing. v. Familiarization with project financing by banks and other financial institutions.

10. Marketing Support:-

Under this scheme the following arrangements are proposed for extending marketing support to the beneficiaries who avail financial assistance under this Scheme.

i) Display of their products in Delhi Emporium as per availability of space. ii) DSIIDC/ Cooperative Stores can get the products manufactured by the selected entrepreneurs and market the same in their own brand name. iii) Allowing such entrepreneur to participate in trade fairs particularly in Delhi Pavilion and in the exhibitions organized by Board or any other Govt. Organization. iv) Forming cooperatives of entrepreneurs manufacturing same or similar type of products under common brands. v) Issue of certificate to the beneficiary unit to get the recognition in the market/society.

11. Submission of application The borrower shall submit the application to the DKVI Board on the prescribed form as per direction of the DKVI Board. The loan application can also be downloaded from the site of Board and can deposit along with all essential documents and a fee prescribed by the Board (equal to the cost of loan application form).

12. Area of implementation

Under Rajiv Gandhi Swavlamban Yojna industrial/professional unit can be set up in any area comes under preview of Govt. of NCT of Delhi subject to its provision/permission in the Master Plan of Delhi (2021) for respective area/location. To set up a unit in non-confirmed areas, the applicant should also submit NO OBJECTION CERTIFICATE of High Power Committee constituted by Industries Department, Govt. of Delhi and Municipal Corporation License (MCL), for the respective industry. In the case of professional / commercial activities the applicant should also submit NOC of the MCD/ Competent Authority, as the case may be, if required.

13 Processing of Application:

Applications received under the scheme will be dealt on First Come First Serve basis.

14 Facilitation Center:

Public relation Officer/ Development Officer will be available daily for inquiry about the scheme. PROJECT AT A GLANCE

CAPITAL, EXPENDITURE (C.E. Loan)

1. Name of the Project : ______

2. Project Cost : ______

3. Plant & Machinery : ______

(a) Equipment : ______

4. Furniture & Fixture : ______

5. Any other : ______

WORKING CAPITAL (W.C. Loan)

1. Raw Materials : ______

2. No. of Employees : ______

3. Salary & Wages : ______

4. Other Expenses : ______

a) Electricity & Water : ______

b) Transportation : ______

c) Rent : ______

d) Stationery & Postage : ______

e) Advertisement & Publicity ______

f) Telephone : ______

g) Misc. Expenses : ______

5. Total cost of project (CE+WC) ______6. Proposed Production/Purchase ______(Annual)

7. Proposed Sales (Annual) : ______

SIGNATURE OF APPLICANT

Name & Address ______

______

Tel. No. ______To be typed on Non-Judicial Stamp Paper of Rs. 10/- duly attested by First Class Magistrate/SDM

PROFORMA

AFFIDAVIT FOR LOAN DECLARATION

I …………………………………… W/o /S/o/D/o/Sh……………………… aged (Years)……….. R/o ……………………………………. do hereby solemnly affirm and declare as under: -

1. That my date of birth is………….. (in words) 2. That my educational qualification is ………………………. 3. That my permanent residential address is …………………..’ 4. That my work site address is …………………. and the same is, owned by me / on rental basis w.e.f. ………… from Sh……… S/o Sh…………………….. 5. It is further declared that

(a) That neither I nor my spouse or any member of my family including adult children have taken loan or applied for any financial assistance from either of the following department: A. Department of Industries, Govt. of Delhi. B. Khadi & Village Industries Commission, Govt. of India. C. Delhi Khadi & Village Industries Board, Govt. of Delhi. D. District Rural Development Agency, Delhi. E. Delhi Scheduled Caste, Schedule Tribe, OBC, Minority and physically Handicapped Developmetn and Financial Corporation Ltd. Delhi. F. Delhi Financial Corporation. G. Any Nationalised / Scheduled Bank. H. Delhi State Cooperative Bank Ltd., Delhi or I. Any other Govt. / Non Govt. Financial Agency / Institution.

Or (b) That I have taken the loan of Rs…………………...…. for the purpose of………… from …………………………………. Its latest outstanding amount is Rs…………… (c) That neither I, nor any member of my family is a member of any cooperative Society registered institution which has applied or taken any loan from the department mentioned in para 1 above.

6. That I am fully responsible for the statement made above and concealment of any fact will render me liable for action as per law or as deemed fit by the Board.

DEPONENT

VERIFICATION

I, the above deponent verify that the facts stated in para one to six are true to the best of my knowledge and belief and nothing has been concealed therefrom.

DEPONENT

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STATEMENT OF ASSET & LIABILITIES AS ON …………………………………..

NAME……………………………………………………………………… PAN NO…………………………. Age as on Date…………………. Years……………………months………. Qualification………………………………………………………………… Address of Residence & Office………………………………………………. ……………………………………………………………………………….. Telephone Number (O)……………………………(R)…………………….. Mobile Number……………………..email address………………………..

Details of the family members: S No. Name Age in years Relationship 1. 2. 3. 4.

Details of Assets & Liabilities Immovable Situation Extent of Market Value property ownership

Total immovable Assets

Movable Properties 1. Cash 2. Marketable Investment (Cost price……………..) 3. Life Policies (Surrender Value)No……………….. 4. Cash at Bank A/c No………………… Name of the Bank 5. Gold and Jewellery 6. Any Other Asset (give details) Total Movable Assets TOTAL ASSETS LESS LIABILITIES BORROWINGS SOURCE SECURITY AMOUNT 1. Rs. 2. Rs. 3. Rs. 4. Rs. NET ASSETS

The immovable properties are the self acquired/ancestral properties of the party, stand in his name and are unencumbered. Signature of Borrower/Guarantor

Place……………………… Date………………………

Appendix – ‘E’

Norms of Surety / Security Rules

As per revised guidelines the procedure of Surety is to be followed as per the procedure to be followed in Commercial Banks. And as per RBI’s guidelines,circulated vide circular No. RPCD / PLNFS / No.B.C.65 / 06.02.31 /1999-2000 dt. 03.02.2000 and PCD/PLFSNo. BC 58/06.02.80/2001-02 dt. 23.01.2002 (Annexure ‘E-1) Banks will provide financial assistance to SSI Sector without obtaining Collateral sureties upto the loan amount of Rs. 5.00 lacs. Under the revised guidelines, the maximum ceiling of financial assistance to be provide is Rs. 3.00 lacs. Therefore, it is proposed that Board may also consider to provide financial assistance without obtaining collateral sureties. However, Banks are taking personal sureties of Income Tax Payers as well as of the Government Employees. The issue has also been discussed with the Manager, SBI, Udyog Sadan, who has informed that they will take the statement of assets and liabilities of the sureties as per draft annexed as Annexure – ‘E-2’. It is therefore, proposed that same procedure be followed in this Board to take the statement of assets liabilities from the sureties. Further, it is also proposed that Board may also take the number of sureties as per details annexed as Annexure ‘E-3’. In case any beneficiary do not have the personal surety either of income tax payer or of Government servant, the entrepreneur /applicant may also be allowed to mortgage any of his property. Fixed Deposit equivalent to the loan amount before granting financial assistance under the Scheme.

Norms of Surety / Security

S.No. Loan amount No. of Sureties/Securities (income tax payer or Govt. Servant)

1. Up to Rs. 2,00,000/- Any one.

2. Rs. 2,00,001/- to Rs. Any two. 3,00,000/-