YSR Navodayam Scheme in Andhra Pradesh for MSME 2020 [Eligibility, Loan, Application Form Process, Documents, FAQ]
The PM of India has highlighted in several speeches that it is necessary to create a favorable climate for the development of both small and large scale businesses. It was under this watchful eye that the Micro, Small, and Medium Enterprises or MSME Development scheme was launched in the nation. The Chief Minister of Andhra Pradesh also understands that nurturing the small, medium and micro businesses is essential for the greater revenue generation. For this, his state cabinet has launched the YSR Navodayam Scheme. Under this scheme, the MSME registered business owners in the state will receive financial assistance. In this article, you will read about the features of this scheme. Additionally, you can gather information about necessary documents and eligibility to apply for the scheme.
Launch details of the scheme
|Name of the scheme||YSR Navodayam Scheme|
|Launched in||Andhra Pradesh|
|Launched by||Y. S. Jagan Mohan Reddy|
|Date of announcement||July 2019|
|Date of implementation||Oct 2019|
|Target beneficiaries||Business owners who fall under the MSME guidelines|
|Supervised by||Andhra Pradesh Government|
Key features of the scheme
- Development of MSME ventures – The primary objective of this scheme is to pave the path for the development and restoration of the micro, small and medium business organizations, which need financial backing.
- More revenue generation – The development of dilapidated MSME businesses will pool in more revenue in the state financial coffers. Thus, the state government will be able to implement more welfare schemes, without worrying about financial constraints.
- Solving employment issues – As the declining MSME business ventures get rejuvenated with the financial assistance, the state will be able to generate more employment opportunities for the youth, within the state.
- Encouraging young entrepreneurs – When young business enthusiasts see that the state government has come forth with financial assistance, they will get the necessary moral boost to start their own ventures.
- Financial assistance for business owners – Though the state government has not yet declared the grant amount, it has suggested that Rs. 4000 crore has been allocated to carry out this scheme.
- One-time grant – The state government will offer the financial grant on a one-time basis. The entire sum will be deposited in the bank account of the business owner in a single installment.
- Tenure for monetary utilization – The scheme guidelines highlight that the beneficiaries, who will attain the money will have to utilize the grant within the next nine months. The MSME department will check the reports to ensure that the business owner has put the money to good use.
- Attaining the money – The Chief Minister has also pointed out that the selected beneficiaries will receive the venture assistance grant in their bank accounts by the end of 31st March 2020.
- Reservation for needy applicants – The scheme also offers reservation facilities to ensure that needy business owners can make the most of this grant. 50% reservation will be kept for the specific caste while women entrepreneurs will also attain the same facilities.
Eligibility to get the scheme benefits
- Residents of Andhra Pradesh – It is imperative that the business owner is a legal and permanent resident of Andhra Pradesh. It is necessary that the business venture is also located within the borders of the state.
- MSME category business – Only those business ventures, which fall under the Micro Small and Medium Enterprises Development department.
- GST registered venture – It is mandatory that the business owner has registered the venture with the state GST department.
- ST, SC, OBC and minority reservations – If the business owner is a member of any of the minority communities or belongs to ST, SC or OBC category, then he/she will be able opt for reservation benefits.
- Reservation for women – 50% of the scheme seats will be reserved for those businesses, which have been established and are run by women.
- Bank account of the business – All business owners maintain a separate bank account to keep track of the venture related inflow and outflow of cash. If the trade owner does not have a bank account, then he will not get the benefits.
Documents necessary for application
- Residential proof – As the scheme is only for the residents of the state, it is mandatory for all the applicants to offer their residential proof documents, which have been issued by the Andhra Pradesh government.
- Identity proof – The business owner need to furnish his/her identification documents like the Aadhar card, for information validation.
- MSME certificate – All interested business owners must possess their registration certificates, which have been issues by the MSME department.
- Business registration certificate – If the small and medium scale business owners are interested in receiving the financial grant, then they have to produce the business organization’s registration certificate.
- Caste certificate – To obtain the benefits of the reservation system, applicants need to submit a copy of their ST, SC, OBC or minority registration certificate.
- PAN card for the business – The applicants need to attach a copy of the PAN card that has been issued in the name of the business organization by the Andhra Pradesh authority.
- Bank account details – The applicant need to furnish documents, which will offer information pertaining to the account number, bank name, branch name, address of the branch, its ISFC and branch code number.
How to get registration form and apply for the scheme?
The scheme has been announced by the Andhra Pradesh government. The Chief Minister has highlight that the respective department will try to implement the project as soon as possible. However, it is not clear how the eligible and interested applicants can enroll and get the financial assistance. Speculations suggest that the state government is most likely to launch a website for YSR Navodayam Scheme. This portal will offer necessary information to the applicants, and will also help in the registration process. Once the state government releases any official notification, we will provide you with the updates.
Lack of financial assistance is the main issue that the small and medium business owners face. As they fail to acquire modern machines, they cannot produce quality items. Thus, their chances of making a mark in the market become slim. The implementation of this scheme will offer one-time financial assistance to such business owners. The trader will be able to utilize the money and develop their venture with ease. If they no longer have to worry about the financial support, they can concentrate on the development of the commercial venture.
The business owners who belong to the minority community, ST, SC, OBC categories, and women owners will be entitled to receive a reservation of 50%.
The applicants need to possess their residential documents, business registration license, GST registration certificate, PAN card issued in the name of the business agency, bank account details and other caste certificates.
Those business and trade agencies, which fall under the MSME category, will be allowed to apply for and attain the benefits of the scheme.
No. The business assistance fund will be offered on a one-time- basis.
Though the Chief Minister has not decided on the amount, the scheme details highlight that the selected beneficiaries will attain financial assistance under this scheme that will help in the business growth.
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