Mizoram Launches Flagship Scheme to Give Financial Aid to Entrepreneurs & Farmers
In a significant move towards fostering economic growth and self-sufficiency among its citizens, Mizoram’s Chief Minister, Lalduhoma, inaugurated a groundbreaking initiative called the Handholding Scheme – Bana Kaih. This state-sponsored program is designed to extend financial support and assistance to entrepreneurs and farmers through a broad array of targeted measures.
The announcement was met with enthusiasm across the state as government officials highlighted that the loan scheme introduced under this initiative is unparalleled in India. A notable aspect of Bana Kaih is its structure, which is segmented into five pivotal components aimed at bolstering economic activities within Mizoram.
At its core, the Handholding Scheme offers a collateral-free and interest-free bank loan, making it easier for selected progress partners (beneficiaries) to secure financial aid up to Rs 50 lakh through partner banks. This feature is particularly compelling as the state government has committed to stand as a guarantor for these loans, engaging with national credit guarantee schemes to provide this layer of security.
Moreover, the scheme incorporates a generous interest subvention policy. The official explained that beneficiaries who diligently adhere to their repayment schedules could qualify for an interest subsidy of up to 100 percent—a move that promises to alleviate financial burdens and motivate strict compliance with repayment obligations.
In addition to financial lending, the scheme also addresses the hurdles faced by individuals unable to secure loans for their livelihood projects. Through the Chief Minister’s Special Category Scheme, eligible individuals can receive a grant-in-aid of up to Rs 1 lakh, empowering them to uplift their projects without the pressure of repayment.
Understanding the critical role of market stability in the success of agricultural and small business ventures, the Mizoram government has introduced a Minimum Support Price (MSP) for four major crops: Ginger, Broom, Turmeric, and Mizo Birdeye Chilli. This initiative ensures that farmers receive a fair price for their produce, implementing a safety net should market rates fall below the government’s declared rates.
The market support extends to a pilot project involving paddy procurement from Kolasib and Mamit districts, setting a minimum support rate at Rs 30 per kilogram for this year. This strategic move aims to strengthen the agricultural foundation of these regions by guaranteeing a minimum income for the paddy farmers involved.
A notable facet of the Handholding Scheme is its dedication to supporting the implementing department. Recognizing the pivotal role of government machinery in the successful deployment of such a comprehensive scheme, officials have earmarked this financial year as a pilot phase for implementation, emphasizing the government’s focus on consolidation.
This multifaceted initiative marks a significant step towards revitalizing Mizoram’s economy, particularly focusing on the agricultural and small business sectors. By providing an array of financial support and ensuring market stability, the Handholding Scheme – Bana Kaih is poised to make a lasting impact on the state’s trajectory towards economic self-reliance and growth.
