What is Skilled Youth Startup Scheme and How Sikkim Startups Can Get Benefits?

The Skilled Youth Startu Scheme is a flagship initiative by the Government of Sikkim designed to empower young entrepreneurs and tackle the growing concern of unemployment in the state. Focused on enabling self-employment and economic growth, this scheme supports Startups for Youth through financial aid, entrepreneurial training, and back-ended subsidies on viable projects across various sectors.

Benefits of Skilled Youth Startup Scheme

The scheme provides numerous benefits tailored to support aspiring entrepreneurs:

• Subsidy based loan: 50% subsidy for BPL applicants and 35% for others on approved projects.
• Loan assistance: Bank loans up to ₹20 lakhs depending on project type.
• Mandatory EDP training: A 3-day Entrepreneur Development Program before loan disbursement.
• Support across sectors: Including dairy, poultry, food processing, tourism, IT services, coaching centers, and more.
• Special provision for PwDs: Persons with Disabilities get preference and 50% subsidy eligibility.

Who Can Apply for Skilled Youth Startup Scheme?

This scheme is meant for unemployed youth of Sikkim who possess entrepreneurial ambition and meet the following criteria:

• Must have a Certificate of Identification (COI) or Sikkim Subject Certificate.
• Minimum education qualification: Class V.
• Age between 18 to 45 years.
• Not a defaulter with any bank and should not have availed CMSS or PMEGP earlier.
• Should belong to families earning less than ₹8 lakhs annually.
• Only one member per family can apply.

MSME Policy on Skilled Youth Startup Scheme

The MSME Policy was revised in 2022 to address the specific needs of the state. MSMEs in Sikkim are envisioned as the foundation for the “Make in Sikkim” initiative, serving as a platform where small enterprises can grow into globally competitive businesses. At the same time, larger ventures will benefit from opportunities to expand internationally by attracting partners with advanced technology and financial resources. The current MSME Policy has been designed to promote and support this vision.

Eligibility Criteria of Skilled Youth Startup Scheme

1. Must be a resident of Sikkim (urban or rural).
2. Valid trade license for the business.
3. Technical applicants must have certified training.
4. Initial contribution of 5-15% of project cost as per bank norms.
5. Children of Govt. employees eligible only if parent is in Group C or D.
6. Must submit a detailed DPR and required documents.

Activities covered and maximum project cost:

• Dairy Loan in Sikkim: Up to ₹5 lakhs.
• Food Processing & Manufacturing: Up to ₹10 lakhs.
• Tourism, Homestays, IT Services: Ranges from ₹5-₹20 lakhs.
• Retail & Services: Beauty parlours, coaching centers, boutique shops, etc.

Sectors Covered and Loan Limits

Application Process

• Submit application and DPR offline to District Industries Centre (DIC).
• Reviewed by a Selection Committee.
• Project forwarded to banks for approval.
• Attend 3-day EDP training.

How StartupFlora Can Help

StartupFlora plays a crucial role in enabling Startups for Youth to benefit from the Sikkim Startup Scheme. Here’s how:

• Application Assistance: Help in preparing and submitting detailed project reports (DPRs).
• Consulting: Guidance on business model planning, trade licensing, and sector-specific mentorship.
• Training Coordination: Support in enrollment for EDP training programs.

Supporting Initiatives by StartupFlora

StartupFlora actively supports youth through its Inviting Entrepreneur Initiative Program and its research collaboration with IIMs and student researchers focusing on MSMEs in Sikkim. These efforts aim to build a robust startup ecosystem that connects innovation with opportunity, making the journey from idea to enterprise smoother for Sikkim's youth.

Final Thoughts

The Skilled Youth Startup Scheme is a game-changer for aspiring entrepreneurs in Sikkim, especially those seeking dairy loans, small manufacturing, or tourism ventures. With a focus on inclusivity, financial support, and capacity building, this Sikkim Startup Scheme is a solid foundation for youth-led economic transformation. With the right guidance from platforms like StartupFlora, youth can seize these opportunities and turn ideas into successful ventures.

FAQ for Skilled Youth Startup Scheme

1. What is the Skilled Youth Startup Scheme?
It’s a government initiative in Sikkim that provides financial support, training, and subsidies to help youth launch their own startups.

2. How much subsidy is offered under the Skilled Youth Startup Scheme?
BPL applicants get 50% subsidy, and others get 35% on approved projects under the Skilled Youth Startup Scheme.

3. Which sectors are eligible under the Skilled Youth Startup Scheme?
Sectors include dairy, food processing, tourism, IT, coaching centers, retail services, and more.

4. Who can apply for the Skilled Youth Startup Scheme in Sikkim?
Youth aged 18-45 with a COI and basic education, not availing PMEGP/CMSS, and with family income under ₹8 lakhs can apply.

5. Is EDP training mandatory under the Skilled Youth Startup Scheme?
Yes, applicants must attend a 3-day Entrepreneur Development Program before receiving loan approval.

6. How does StartupFlora support to you for the Skilled Youth Startup Scheme?
StartupFlora helps with project reports, trade licensing, EDP training coordination, and application filing for this scheme.