Seed money funds up by 35 pc this year

The Industries department may have been facing a default of Rs 17 crore in the repayment of loans under the state’s Seed Money scheme,but it has decided to increase funding by nearly 35 per cent this year for entrepreneurs in Pune to help them set up units.

Written by Ishfaq Naseem | Pune | Published:May 12, 2012 5:56 am

The Industries department may have been facing a default of Rs 17 crore in the repayment of loans under the state’s Seed Money scheme,but it has decided to increase funding by nearly 35 per cent this year for entrepreneurs in Pune to help them set up units.

Officials said this year the seed money contribution has been increased to Rs 90 lakh in Pune district as against last year’s contribution of Rs 70 lakh to provide funding to the industrial units up to nearly Rs 6 crore. While 75 per cent of the Rs 6 crore will be provided by banks ,the seed money to be contributed by the industries department will be 15 per cent of the project cost of each industry and remaining 10 per cent will be contributed by the entrepreneur.

According to officials,as many as 163 projects in both the services and manufacturing sector will get the funding as against 113 projects that were funded last year. Last year,nearly 100 per cent funding was made to the industry as the entire Rs 70 lakh was spent. The seed money contribution by the industries department will come at a subsidised interest rate to entrepreneurs,with a rebate of 3 per cent in case of regular payments. Officials said there is an increase in number of people seeking loans under the Seed Money scheme owing to which they are increasing the share of seed money this year,despite a whopping default of Rs 17 crore under the scheme. “The recovery position has increased under the Seed Money scheme last year and action through seizure of property is being planned for increasing the recoveries,” said an Industries department official. Of the Rs 90 lakh seed money,Rs 50 lakh is targetted to be disbursed to the entrepreneurs in the general category while remaining Rs 40 lakh will be disbursed to scheduled caste,scheduled tribe and other backward class.

S S Survase,General Manager,District Industries Centre,Pune,said that later this month “special guidance programmes will be offered to the entrepreneurs to help them avail the loans.” He said the seed money is being increased due to more demand.

“The main advantage of the scheme is that the loan allocation is made at the block level,which helps youth from different blocks of district to take advantage of the scheme.” said Survase.

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