Stand-up India aims to empower every Indian and enable them to stand on their own feet. The programme recognises the challenges faced by Scheduled Caste (SC), Scheduled Tribe (ST) and women entrepreneurs in setting up enterprises, obtaining loans and other support needed from time-to-time for succeeding in business. The programme, therefore, endeavours to create an ecosystem that facilitates and continues to provide a supportive environment for doing business. The objective of the Stand-up India scheme is to facilitate bank loans between `10 lakh and `1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch without collateral for setting up a Greenfield enterprise.
The focus areas with regards to implementation of Stand-up India are as follows:
In order to make Stand-up India successful, awareness campaigns were organised including melas, financial literacy camps, etc. Orientation programmes for banks and beneficiaries were organised via online portals, workshops, etc., to make bank officials disbursing loans are clear about the Scheme and the beneficiaries are well educated about the Scheme benefits.
Hand-holding (pre and post sanction of loan):
Some successful practices involve:
Effective co-ordination amongst implementing units:
Since the Scheme is to be implemented by banks and its branches, it is essential that all agencies and persons involved, i.e. SIDBI, LDMs, and bank officials are at the same page and understand the nuances of the Scheme and work effectively towards the Scheme implementation. Successful districts and their bank branches are able to sanction loans not only to the minimum mandate but above and beyond that. In such success stories, entrepreneurship within women, SC/ST communities is given a thrust by means of effective coordination.
Kullu adopted a multi-thronged strategy which required budging and prodding at multiple levels to motivate the target sections of society. District Level Consultative Committee (DLCC) meetings under the chairmanship of Deputy Commissioner, were held on regular basis to review progress made under the programme.
A sustainable business growth model has been adopted which encourages beneficiaries to share their experiences and solve problems amongst themselves. Continuous handholding and support is being provided by the respective agencies and banks to the beneficiaries.
All Government agencies, specially the Block Development Officers were advised to take apt measures to popularise the programme, identify aspiring entrepreneurs and provide assistance to them.
Impact (upto 31.12.2016)
Lead District Manager ensures transparency and accountability by contacting various customers in different bank branches. District Level Bankers Committee (DLBC), under the chairmanship of District Collector, also periodically reviews the implementation progress. Lead Bank in District Shahdara, in consultation with revenue officers and bank branches, organised 47 meetings during the period wherein approximately 7,700 clients/ prospective borrowers participated. Submission of applications is linked with AADHAAR, thereby, reducing the possibilities for submission of multiple applications by a borrower. Action is initiated by bank branches within 48 hours of receipt of the application under the Scheme. Loan is sanctioned within 15 days. Bank branches also encouraged home visits in order to increase participation. After sanctioning of loan, bank officers conduct periodical visits at the enterprise sites for inspection.
District encourages banks, especially those who have not received any applications under the programme, to conduct special camps, spread awareness about the programme and identify potential borrowers. Banks are also advised by the District to counsel the prospective beneficiaries for convergence of the programme so that the scale of finance is broadened to meet financial requirement of the concerned individual/firm.
Convergence with Other Schemes:
Special stress is laid on the convergence of this programme with schemes such as Prime Minister’s Employment Generation Programme (PMEGP), Khadi and Village Industries Commission (KVIC) and MUDRA.
Impact (upto 31.12.2016)
Innovations Adopted in Implementation, Including Innovative use of Available Resources
Other efforts made regarding promotion and awareness of the Scheme:
Converging the Benefits
The Raipur district in Chhattisgarh converged Standup India scheme and the State Industrial policy to provide maximum benefit for entrepreneurs. This was enabled through focusing on manufacturing sector as it allows more benefits and extending support to weaker sections.
The subsidy available to weaker section (40%) and interest subsidy (75%) in the state policy was linked to the Stand-up India Scheme. Moreover, the benefits under stamp duty and electricity duty exemption provisions of the State Industrial Policy were availed for the Stand-up India applicants.
The Stand-up India Programme benefitted applicants under other schemes too. The Prime Minister Employee Guarantee Yojana (PMEGY) has a disbursal limit of `25 lakh whereas Stand-up India limit is `1 crore. Many PMEGY candidates wanted loans more than the limit, and they were thus connected to the Stand-up India scheme. Banks also benefited under Stand-up India as they have defined priority sector lending targets and the same was aligned to the Scheme.
The administration also used its discretionary power to help solve some of the Non-performing assets (NPA) problems faced by banks by linking their support to Standup India. Clearance of NPA under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act) was done.
The administration cleared `233 crore of NPA cases under the act and this was a huge motivation for banks. Since Ease of doing business (EoDB) has a single window clearance rule and the support of portals like Udyam Akansha, this was also linked with the Scheme.
In the past one-year, more than 11,000 units have been registered under Udyam Akansha of which 2,700 are from Raipur district alone.
The District has adopted easy processes in considering the applications of Women/SC/ST at sponsoring agency level and at bank branch level.
Step by step process followed:
District Magistrate, Lead District Manager, GMDIC and other officials visit the units financed under the programme regularly to know the challenges faced by them. The District embraced State Government policies for tax relaxation and other facilities. Under the programme, banks maintains transparency for early disposal of applications.
The District has involved Panchayti Raj Institutions (PRI)/Local Self Government to generate awareness about the programme.
Convergence with other Schemes
Stand-up India program in Burhanpur has been interlinked with Mukhyamantri Yuva Udyami Yojana (MMYUY), Prime Minister Employment Generation Programme (PMEGP), MSME and Mukhya Mantri Sadak Yojana (MMSY).
Impact (upto 31.12.2016)
Under the programme, 13 bank branches have sanctioned loans to SC/ST and women entrepreneurs. In the District, loans have been sanctioned/ disbursed to 27 units, of which 15 are manufacturing units, nine are service units and three are trading units. Proposals of eight units are under evaluation for sanction of loan under Stand-up India.
The District devised a Standard Operating Procedure (SOP) for handling requests made by applicants on Stand-up Mitra Portal. The SOP details various steps required to be taken for processing of applications under the programme.
The District has prepared a list of Frequently Asked Questions (FAQs) to address anticipated queries of the borrowers/applicants. A Single Window System has been set up by the District where an applicant is asked a few questions to assess his requirement and accordingly, his request is forwarded to the bank or concerned department/ organisation. The response time for handling requests is less than 15 days in the District. Based on the project, applicant is advised about the clearances required and he/she can apply for the same through the portal.
The request for handholding, training, infrastructure and certification support are received both online and offline. Thereafter, the borrower is redirected/advised to contact the following institutions/organizations:
A Special Monitoring Committee for Stand-up India under the Chairmanship of District Collector has been constituted. The committee with CEO - Zila Panchayat, Lead District Manager of Bank (LDM), Chief General Manager (CGM) District Industries Centre, banks and other stakeholders holds periodic meetings for monitoring the implementation of the programme including requests for handholding.
Nine district level workshops have been conducted under the Chairmanship of District Collector, wherein, all stakeholders (beneficiaries/ banks/ industry department/Stand-up India Help Centers etc.) met and discussed issues related to disbursement of loan and further providing help required by beneficiaries in setting-up of enterprises. Task-Force Committee for Prime Minister Employment Guarantee Programme (PMEGP) and Mukhyamantri Yuva Swarojgar Yojana (MMYSY) holds meetings in presence of public representatives.
Udyami helpline (1800-233-3943) has been established for helping entrepreneurs who wish to seek information about Stand-up India and other schemes, including the procedure, eligibility formalities to be completed, etc.
In the district, the programme was publicised by holding State level Workshop. Advertisements are published in print and electronic media. 5 District level workshops have been organised to encourage and educate women and SC/ST population.
140 Stand-up India Help Centers (SUHCs) have been set up in the District. The programme was also publicized through use of social media including WhatsApp groups, brochures, posters and banners. Camps and stalls of Stand-up India are put up at events such as Collectorate Jan Darshan (every Monday), Lok Suraj Abhiyan and Jan Samasya Nivaran Shivir (twice in a month), Digi Dhan Mela, etc.
Convergence with other schemes:
One of the key initiative undertaken by the District is convergence of Stand-up India programme with other State Government Schemes. Stand-up India cases has been made eligible for incentives under the category of priority sector (selected sunrise sectors identified by state) through State’s Industrial Policy. The margin money under MMYSY (Mukhyamantri Yuva Swarojgar Yojana) is being used for Stand-up India cases. Similarly, all Stand-up India cases are eligible under weaker section and priority sector lending for banks as per RBI guidelines.
Impact (upto 31.12.2016)
Under the programme, 83 bank branches have sanctioned loans to SC/ST and women entrepreneurs. Loan amount of `25 crore has been sanctioned to 93 units, of which 83 are women and 10 are SC/ST. Loans amounting to `8.88 crore have been disbursed to 59 units.
Ujjain Stand-up India has been locally rechristened as UMANG. The District Administration has laid down well defined procedures as per the Stand-up India Guidelines.
Stand-up India in Ujjain has been given wide publicity under the name of Umang.
Convergence with Other Schemes:
Stand-up India has been interlinked with existing schemes of State Government and Government of India. Benefits of schemes such as Chief Minister’s flagship scheme of ‘CM YUVA Udyami’, Prime Minister’s Employment generation Programme (PMEGP) and Rural Self Employment Training Institutes (RSETI) from NABARD are also provided to entrepreneurs under Stand-up India. Preference is given to the beneficiary of Stand-up India in setting up of enterprise under Farmer Producer Organisation (FPO) fund of NABARD. The District Administration also plans to give preference to Standup India beneficiaries in Government procurement.
Impact (upto 31.12.2016)
Under the programme, 31 bank branches have sanctioned loans to SC/ST and women entrepreneurs. 83 loans have been sanctioned to 50 women and 33 SC/ST entrepreneurs.
A total of 63 loans have been disbursed. This has resulted in generation of direct employment of 4000 persons and indirect employment of 10,000 persons. Potential borrowers have given good response to the programme and requested for training on eco-friendly products, agriculture and allied activities, health, textiles, financial literacy, digital banking, etc.
Strength in Collaboration
Medchal-Malkajgiri District in Telangana embraces a wide range of industries, educational institutions and natural resources. With a population of 28 lakh, the district comprises of two Revenue Divisions and 14 Mandals with 29 Commercial Banks through 482 branches.
Medchal-Malkajgiri District converged Stand-Up India Scheme and state industrial policies to provide maximum benefit to entrepreneurs. Telangana State Industrial Development and Entrepreneur Advancement (T-IDEA), and Telangana State Programme for Rapid Incubation of Dalit Entrepreneurs Incentive Scheme (T-PRIDE) were merged. A single window clearance through Telangana State Industrial Project Approval and Self Certification system (TS-IPASS) was also introduced.
Through T-IDEA, the State Government is now supporting the project with Investment subsidy of 15% for women and 35% to SC/ST besides stamp duty exemption, VAT and CST exemption for five years and power reimbursement. The State is also offering skill development facilities under Central Institute of Plastic Engg. Technology (CIPET), Indian Institute of Packaging (IIP) and support institutes like NIMSME, MSME-DI for EDP trainings.
Stand-up India is also benefitting traders besides industries and services taking up green field projects. To reach the target beneficiaries, wide publicity is was done by the District Administration through DICCI, women organisations and banks.
Banks further guided beneficiaries by linking with handholding institutions and making them loan ready. Co-ordination meetings with bankers, and promoting institutions and entrepreneurs, let the District achieve 383 sanctions during 2017-18.
Helping the Weak Stand
To support entrepreneurship among women and SC & ST communities, the Gwalior District Administration in Madhya Pradesh and all stakeholders promoted Stand-up India scheme through various hand holding agencies like DIC, NABARD, RSETI, FLCC and others.
The District Administration took all possible steps to mitigate challenges. All departments were instructed to provide top priority to green field enterprises being set up under Stand-up India Scheme. The forum was used for beneficiaries for whom regular meetings were organised by LDM and NABARD to sort out their problems. Additionally, the administration used its discretionary power to help solve some of the Non-Performing Assets problems faced by banks by linking their support to Stand-up India. Banks were advised to promote this priority programme in all DLCC meetings.
State sponsored agencies were also advised to provide maximum benefit to the entrepreneurs. District Administration organised fairs wherein Stand-up India was popularised among people. With the focus on manufacturing sector, assistance was finally extended to weaker sections under the State policy and linking the same to Startup India. Further, the subsidy and interest subsidy in the State policy was linked to the Stand-up India Scheme.