Odisha govt to give interest-free loans to youth

BHUBANESHWAR: The Odisha government on Monday decided to provide interest-free loans up to Rs 1 lakh to youths of the state, officials said.

According to the official statement issued by the state government, the Odisha Cabinet chaired by Chief Minister Naveen Patnaik approved a total of 26 proposals, including the new scheme 'Swayam'.

Under the new government scheme 'Swayam' to create self-employment for youth, 1 lakh eligible rural and an equal number of urban youths in the age group of 18-35 years will receive interest-free loans of up to Rs 1 lakh for starting a new business or expanding an existing one.

Further, under this scheme, all rural unemployed youth or those with no outstanding loan for the same purpose from any central or state government-supported schemes in the age group of 18-35 years (18-40 years for a special category) desirous of starting a new business or to expand their existing business will be provided interest-free bank loan for project cost upto Rs. 1 Lakh.

The government informed further that the scheme is also for urban youth.

"Swayam (Uraban) will facilitate self-employment for the urban youth i.e. Swatantra Yuva Udyami. Under the scheme, Rs.1 lakh (one lakh) interest-free loan will be provided to unemployed, underemployed urban youth of the state, within the age group of 18-35 years (up to 40 Years for special categories such as SC, ST, PWD and transgender) for setting up gainful self-employment ventures or micro-enterprises, suited to their skills, training, aptitude and local conditions through easy access of credit through banks with interest subsidy," the government said, according to the release.

The scheme will be operational for two years and Rs 672 crore will be spent from the state's coffers.

The government has also decided to provide two jute bags of 20 kg and 10 kg capacity to each of the PDS families for their daily use, free of cost, Nayak said, adding that the fund requirement for procurement and distribution of the jute bags will amount to Rs 278.69 crore.

Similarly, for providing one-time livelihood assistance of Rs 1,000 per family, the minister said another Rs 959.05 crore will be required. A total of Rs 1,237.74 crore will be borne out of the state budget.

The state cabinet also approved the umbrella scheme Mukhyamantri Maschyajibi Kalyan Yojana (MMKY), which will be implemented during the 2023-24 fiscal with a total budget outlay of nearly Rs 448 crore.