Sarkari Yojana
Karma Sathi Prakalpa
About Karma Sathi Prakalpa
“Karma Sathi Prakalpa” is run by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, to support young people of the state in starting new manufacturing units and small businesses, services and trading among them. New income-generating projects receive soft loans and subsidies under the scheme. The support targets young, enthusiastic entrepreneurs from rural as well as urban parts of the state so that they can stand on their own feet and generate gainful self-employment. Loans on soft terms are given by the State-owned Cooperative Bank, which implements the scheme. Monitoring is done by an Additional District Magistrate in each district and by the Director of MSME at the state level. > Objectives:
1. Help the state’s young entrepreneurs establish new manufacturing enterprises and small businesses, including services and trading. 1. Open up gainful self-employment opportunities across rural and urban parts of the state.
Scheme Overview
State Government
Individual
Scheme Details
Eligibility Requirements
To qualify for Karma Sathi Prakalpa, applicants must satisfy the following conditions:
1. The scheme is open to any intending or prospective entrepreneur who meets the conditions listed below. Just one member per family may apply, with "family" meaning parents and spouse.
Age:
The entrepreneur's age must lie between 18 - 50 years, counted from the date of notification, September 2020.
Educational Qualification:
At least Class VIII must have been passed, and those registered with the Employment Bank will get preference.
Assistance can be sought for any new income-generating…
Assistance can be sought for any new income-generating self-employment venture in manufacturing, services, or trading.
Benefits Provided
Karma Sathi Prakalpa provides the following benefits to eligible applicants:
New income-generating projects in the manufacturing, service, and trading/business sectors are supported through a soft loan along with subsidies, with total assistance going up to ₹2,00,000/-.
Project Subsidy:
The entrepreneur gets 15% of the project cost as subsidy, subject to a ceiling of ₹25,000/-.
Interest Subsidy:
Part of the yearly interest the entrepreneur pays to the Cooperative Bank is reimbursed.
Borrowers who repay on time have 50% of their interest subsidised, for up to 3 years.
In every other case, 40% of the interest is subsidised, again for up to 3 years.
Mode of Disbursement:
Bank Loan: The loan, 95% or 90% of the amount, is released by the State-owned Cooperative Bank as Cash Credit in two installments.
Half of the loan amount, the first installment, is released and linked to the applicant's Cash Credit Account.
The bank releases the second installment only after receiving a certificate showing that the first installment has been utilized.
Subsidies:
Project Subsidy: Each quarter, Cooperative Banks file project subsidy claims with the District MSME Facilitation Centre (MFC), which sends a requisition to the Department; the Department then releases the full subsidy amount to the West Bengal State Cooperative Bank Limited.
Interest Subsidy: Every half-year, the Chief Executive Officer of the West Bengal State Cooperative Bank raises a requisition for the interest subsidy, and the amount is credited to the Cash Credit account of the sanctioned and disbursed loan.
Both subsidies are paid out through the portal, which is connected to the Integrated Financial Management System (IFMS).
Validity:
Interest subsidy is given for three years at most. Even when the bank allows a longer repayment period (e.g., 5 years), the government's interest subsidy stays limited to 50% of the interest paid during the first three years.
Documents Required
Applicants should keep the following documents ready before starting the application:
A passport-size photograph
A passport-size photograph.
Document proving age
Document proving age.
Proof of residence
Proof of residence.
School or College certificate showing Educational Qualification
School or College certificate showing Educational Qualification.
A Project Report (the Model projects can be…
A Project Report (the Model projects can be used as a guide while preparing it).
Caste certificate, where applicable
Caste certificate, where applicable.
Proof of Employment Bank registration, where applicable
Proof of Employment Bank registration, where applicable.
How to Apply
Offline Application
Applicants can apply for Karma Sathi Prakalpa through the offline application process outlined below.
Manual Application Form : The prescribed Application Form (Annexure-I) is given out free to intending entrepreneurs at several offices. It can be collected without any charge from:
The Block Development Officer (BDO)'s office, for applicants…
The Block Development Officer (BDO)'s office, for applicants living in rural areas.
The Sub-Divisional Officer (SDO)'s office, for applicants living…
The Sub-Divisional Officer (SDO)'s office, for applicants living in Municipal/Notified areas outside Kolkata Municipal Corporation limits.
The Kolkata Municipal Corporation (KMC), for applicants living…
The Kolkata Municipal Corporation (KMC), for applicants living within the KMC area.
The district's MSME Facilitation Centre (MFC) of the…
The district's MSME Facilitation Centre (MFC) of the District Industries Centre (DIC). Physical Application Form under the scheme shall be submitted to:- Entrepreneurs living in rural areas hand in the form to the Block Development Officer; those in Municipal/Notified areas outside the Kolkata Municipal Corporation submit it at the Office of the Sub-Divisional Officer; and residents of the KMC area submit it to the Kolkata Municipal Corporation. Forms can also be handed in directly at the district's MSME Facilitation Centre (MFC) of the District Industries Centre (DIC).
Objectives
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Official Application & Website
Verify the latest eligibility, dates and instructions before applying.