Chief Minister’s Startup Scheme (CMSS)
Chief Minister’s Startup Scheme (CMSS)
The Chief Minister’s Startup Scheme (CMSS), launched on 15th August 2017, is approved by the Government of Sikkim to inspire the local unemployed youth such as school dropouts to develop new entrepreneurial ventures and self-employment opportunities in rural and urban areas of the State. It intends to establish Startups, both in manufacturing and service sectors that include agriculture/ horticulture/ food processing/ animal husbandry/ handloom and handicrafts etc. The scheme provides financial contribution assistance component of 25% of the project cost for financially viable/ bankable projects for the ventures that entail a total investment up to Rs. 20 lakhs.
Objectives of the Scheme
- To boost entrepreneurial spirit amongst the local unemployed youth and school dropouts of the State and influence them to set up any commercially viable/ bankable Startup ventures in any sector that includes agriculture/ horticulture/ food processing/ animal husbandry/ handloom and handicrafts etc. in the State abiding by the Government policies.
- To instil self-confidence amongst the local youth by providing an enabling environment and initial financial handholding for their future socio-economic growth by becoming promoters of their ventures.
- To make the owner of their startup venture instead of becoming an employee of someone else.
- To provide a platform to transform any innovative idea into a commercially viable business venture for economic upliftment.
- To generate equitable entrepreneurial opportunities in rural and urban areas of the State by setting up a new self-employment ventures/ projects by providing one-time non-refundable financial assistance in the form of promoter’s financial contribution component of 25% as margin money/ promoter’s financial contribution in PSU bank/ PSU financial institution that are approved project for funding under the schemes or any other credit linked central subsidy scheme.
All activities/ ventures that do not belong to the negative list of the scheme guidelines can be taken into consideration under CMSS. For some service sector activities, the applicant has to possess a valid commercial driving license. In order to open a manihari/ grocery shop, the applicant has to possess a valid trade license from a competent authority. For establishing a new boutique shop/ beauty parlour, the candidate has to possess at least three months certificate course from a professional institute/ body. Those activities related to the land purchase, construction of a building, excluding the purpose of development or up gradation of Tourism Department registered/ approved Homestays, is neither admissible nor considered under the project cost.
The following activities will not be allowed under CMSS for setting up micro-enterprises/ projects/ units.
- Any industry/ business associated with production/ manufacturing or sale of items such as Beedi/ Cigar/ Pan/ Cigarette/ Gutka etc. producing/ preparation tobacco as raw materials.
- Manufacturing of Polythene carry bags that isIdentification less than 20 microns thickness, and manufacture of carrying bags or containers made to recycle plastic for storing, carrying, dispensing or packaging of foodstuff and another item that causes environmental problems and that is banned from the State.
- The applicant has to be bonafide local youth who has to possess Certificate of Identification (COI) of the applicant or his/ her father possessing Sikkim Subject Certificate/ Certificate of Identification.
- The applicant has to be unemployed and has to possess the educational qualification of class V from any recognised school.
- Only one member of the family is eligible to avail the benefits of the scheme.
- The applicant has to be between 15-40 years of age on the date of application.
- Local unemployed youth from BPL families/ rural area residents are given preference in the scheme.
Project Cost Specifications
- The project cost includes Capital Expenditure and three months working capital requirement for the venture.
- The cost of land should not be included in the Project cost. Cost of the ready built and long lease or rental work shed/ shop can be included in the project cost subject to restricting such cost of the ready built or long lease or rental workshop/ work shed to be addedmicroenterprises in the project cost that is calculated for a maximum period of three years.
- CMSS is available to all new financial viable ventures, microenterprises, that includes village industries projects except the activities that are indicated in the negative list.
- Existing old/ units are not eligible except for homestays registered/ approved under the State Department of Tourism.
Selection of Applicants
The applicants are required to submit the application in the prescribed format to avail the benefits under the CMSS. The filled application is recommended by the concerned area MLA and has to be submitted in the Office of the Chief Minister’s Startup Scheme Selection Committee (CMSSSC) that is headed by the Special Secretary/ Director. The CMSSSC receives the application along with the required documents as mentioned in the scheme guidelines and issues an acknowledgement that is duly indicating the application ID.
Repayment of Loan
The promoter’s financial contribution component of 25% of the approved project cost under CMSS will be non-refundable one-time financial assistance. Repayment of Loan amount along with interest, obtained from PSU financial institution/ PSU bank under the scheme or any other credit linked central subsidy scheme would be the sole responsibility of the applicant as per the terms and conditions of the lending organisation/ central concerned scheme.
Given below are the mandatory documents that have to be possessed by the candidates.
- Two passport size photographs.
- Attested copy of Sikkim Subject Certificate/ Certificate of Identification.
- Attested copy of mark sheet and certificate that is issued by Board/ University.
- Attested copy of Birth Certificate.
- Two copies of the Project Report.
- BPL certificate that is issued by DESME.
- Copy of Electoral voter card for address proof.
- Copy of Aadhaar Card.
- Copy of valid Employment Card that is issued by the concerned BAC.
- Startup projects that are under the manufacturing or service sector including agriculture/ horticulture/ food processing/ animal husbandry/ handloom and handicrafts etc. with a maximum project cost of Rs. 20,000 lakhs is eligible under the scheme.
- Admissible financial assistance of 25% of the approved bankable project cost in the form of front ended promoter’s financial contribution for the bankable project that is approved by any PSU financial institution/ PSU bank.
- The non-manufacturing sector projects such as tourist taxi operation project etc. that is invalid for grant of Central subsidy under the credit linked Credit sector subsidy scheme due to project cost restrictions, non coverage of the activity etc. the promoter’s contribution financial assistance under CMSS amounting to 35% of the approved bankable project cost shall be admissible.
- For other non-manufacturing sector projects, the promoter’s contribution of financial assistance under CMSS remains at 25% of the approved bankable project cost.