Coimbatore: In a bid to attract more beneficiaries to the unemployed youth employment generation programme (UYEGP), the State government has increased the investment limit for trading and service sectors from Rs 1lakh and Rs 3lakh respectively to Rs 5lakh. Under the scheme, unemployed youth are offered 25% of the project cost as loan subsidy to start small businesses.

Officials of the district industries centre (DIC) said they hope this would attract more beneficiaries. Now the scheme has lesser number of beneficiaries owing to the lesser investment limits. Officials said there were also representations from beneficiaries to increase the investment limit, as they said even to start a small commercial enterprise, they needed to invest about Rs 3lakh.

Also, the annual income limit for beneficiaries has been increased from Rs 1.5lakh to Rs 5lakh.

DIC general manager B Karthigaivasan said with these changes, they seek to reach out to more beneficiaries. “They need Rs 3lakh to Rs 5lakh to set up a shop or an auto spare parts outlet. So, with the investment limit now raised to Rs 5lakh for trading and service sector, more people would benefit,” he said.

Under UYEGP, unemployed youth, who have completed Class VIII, and are above 18 years, will be given 25% of the project cost up to a maximum of Rs 1.25lakh as subsidy to start a business. While the beneficiary should invest 5% of the total project cost, they could avail bank loan to cover the rest of the cost. Under the scheme, manufacturing businesses can start businesses with project cost up to Rs 10lakh.

The district’s loan target under UYEGP this year is Rs 175lakh, which would translate to Rs 700lakh of investments.

Published On : 31-10-2019

Source : Times of India