AABCS scheme: Dalit youths in Tamil Nadu turn entrepreneurs with subsidised loans from state
The state government has so far received a whopping 12,472 applications and have forwarded 7,365 of them to various banks to support the Dalit entrepreneurs.
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CHENNAI: The Annal Ambedkar Business Champions Scheme (AABCS) has helped many Dalit youths turn entrepreneurs within a few years.
Under the AABCS implemented by the state MSME department, the state government provides a 35% capital subsidy and a six percent interest subsidy for the loans borrowed from banks for the remaining 65% of the capital.
The state government has so far received a whopping 12,472 applications and have forwarded 7,365 of them to various banks to support the Dalit entrepreneurs. Bank loans have been cleared for 2,136 applicants in the last financial year alone.
According to literature circulated by the ruling DMK, the state government has disbursed capital subsidy to the tune of Rs 159.70 crore to 1,303 entrepreneurs as well as Rs 33.09 crore interest subsidy.
Among the successful Dalit entrepreneur beneficiaries of the scheme are Anjali of Sivagangai and Santhosh Kavin of Thoothukudi. A confident Anjali now earns Rs 4 lakh per month, including profit worth Rs 70,000 from her jute bag manufacturing unit that she started with 35% capital subsidy from the state MSME department and a Rs 32.70 lakh bank loan she availed with state support. A victim of caste discrimination, Anjali now employs 10 persons.
Santhosh Kavin of Thoothukudi secured a loan of Rs 1.96 crore and availed Rs 60.32 lakh capital subsidy from the government. Today, he makes a monthly turnover of Rs 30 lakh from his matchbox manufacturing business and employs 16 people.