The Skilled Youth Startup Scheme (SYSS) was launched on 15th August 2020 by the Commerce & Industries Department, Government of Sikkim. The scheme aims to reduce unemployment and create ample self-employment opportunities in both rural and urban areas. It targets educated unemployed youth by encouraging them to set up manufacturing, service, business, co-operative, agriculture & allied ventures. Beneficiaries can avail loans with back-ended subsidy assistance of 50% for Below Poverty Line (BPL) applicants and 35% for others on financially viable, bankable projects.
Objectives:
• To promote entrepreneurial qualities among local unemployed youth across various sectors including Agriculture, Horticulture, Food Processing, Animal Husbandry, Handloom & Handicrafts, Retail, Tourism, Services, Manufacturing, etc.
• To generate equitable entrepreneurial opportunities by providing a one-time non-refundable financial assistance with back-ended subsidy upon project approval by banks or PSUs.
The scheme is implemented by the Department of Commerce & Industries through the District Industries Centres (DICs), which assess projects, ensure financial viability, and assist with credit linkage to financial institutions.
Benefits
• Subsidy: Back-ended subsidy assistance at 50% for BPL and 35% for others on the project cost.
• Training: Selected beneficiaries must complete a 03-day Entrepreneur Development Training Programme (conducted by RSETI or a competent government training institute) within 60 days of selection, with mandatory certification before loan release.
• Coverage: The scheme covers various sectors with maximum project cost limits ranging from ₹3,00,000 to ₹20,00,000 depending on the sector (e.g., Dairy, Poultry, Piggery, Organic Farming, Food Processing, Tourism, IT & ITES, etc.).
Eligibility
• The applicant must possess a Certificate of Identification (COI), such as a Sikkim Subject Certificate, Certificate of Identification, or Residential Certificate (for urban areas).
• The applicant must be unemployed and have at least a class 5th educational qualification from a recognized school (technical projects require a certificate from a Technical Institute).
• Age must be between 18 to 45 years at the time of application.
• Only one member per family is eligible, with a family income not exceeding ₹8,00,000 per annum.
• A contribution of 5% of the project cost by the beneficiary is required.
• The beneficiary should not be a defaulter to any financial institution and must have a Trade License for the proposed project.
• Priority is given to applicants under the PWD category, who can avail 50% loan subsidy.
• Land cost is excluded from the project cost; however, costs for ready-built or long lease/rental work sheds are included under specified conditions.
Application Process
Offline Process
• Step 01: Submit the application in the prescribed format (Annexure-I) along with a Detailed Project Report and mandatory documents to:
General Manager, DIC (E/N)/(S/W), Govt. of Sikkim, Gangtok/Jorethang.
• Step 02: The District Industries Centre (DIC) will acknowledge the application using the prescribed format (Annexure-II) and assign an Application ID.
• Step 03: The Selection Committee reviews the project proposals for in-principal approval and forwards the list to the headquarters.
• Step 04: The Secretary of the Commerce & Industries Department, along with the committee, sanctions the back-ended subsidy after project sanction.
• Step 05: Upon sanction and project disbursement, the subsidy is released by the Government through the respective public sector banks/financial institutions.
Repayment of Loan:
Loan repayment (including interest) is as per the bank’s terms. Early closure of the loan is possible with department approval, with a lock-in period of 1 year for agriculture & allied activities and 3 years for other projects.
Note: Exaggeration of project costs to obtain a higher subsidy will result in rejection.
Documents Required
• Two Recent Passport Size Photographs
• Attested Sikkim Subject Certificate/Certificate of Identification/Residential Certificate
• Attested Copy of Mark Sheet and Certificate Issued by Board
• Attested Copy of Birth Certificate/Certified by Local Panchayat
• Two Sets of Proposals with Project Reports (Prepared and Certified by the concerned Line Department)
• Copy of Electoral Voter Card (as Address Proof)
• Copy of Valid Unemployment Card (Issued by the respective BAC)
• Land Parcha & Land Lease Agreement (if applicable)
• Relevant Permits/Licenses at the time of bank loan sanction
• BPL Certificate from DESME
• Income Certificate issued by the concerned BDO/SDM Office
• NOC from SABCO/SIDICO
• PWD Certificate (if applicable)
Frequently Asked Questions (FAQs)
Q: What is the amount of subsidy provided through SYSS?
A: Beneficiaries receive a back-ended subsidy of 50% for BPL applicants and 35% for others on the financially viable project cost.
Q: What sectors are covered under the scheme?
A: Sectors include Animal Husbandry (Dairy, Poultry, Piggery), Organic Farming (Green House), Food Processing, Manufacturing, Wood Handicraft & Cottage Industries, Tourism, IT & ITES, Retail, Coaching Institutes, Herbal Products, Paper Bags/Plates, Bamboo Industries, Automobile Workshops, Diagnostic Centres, Film Industry, and others as deemed fit by the committee.
Q: Can a person from rural areas avail the benefits?
A: Yes, the scheme targets youth in both rural and urban areas of Sikkim.
Q: How does the loan repayment mechanism work?
A: Repayment is solely the responsibility of the beneficiary as per the terms of the lending bank, with specified lock-in periods.
Q: What is the beneficiary’s contribution towards the project cost?
A: The beneficiary must contribute 5% of the project cost.
Q: Who can apply for SYSS?
A: Unemployed youth aged 18 to 45 with the required educational qualification and a valid Certificate of Identification, and with a family income not exceeding ₹8,00,000 per annum are eligible. Only one family member per family is eligible.
Q: Is the application form submitted online?
A: No, the application process is offline.
Q: Where can I get the application form?
A: The application form is available at the District Industries Centre (DIC) or can be obtained from the Commerce & Industries Department office in Sikkim.