Norka set for 100% utilization of funds
Salim Joseph | TNN | Mar 11, 2019, 08:37 ISTTHIRUVANANTHAPURAM: The ambitious NDPREM (Norka department project for return emigrants) self-employment scheme for returnees is all set for a total utilization of the 2019-20 allocation of Rs 15 crore. Norka Roots, the public sector undertaking under non-resident Keralites' affairs department (Norka), has been striving to attain this since the project's launch in 2013. Only around Rs 8 crore was utilized in the fiscal 2018-19, where around similar fund was sanctioned for the project.
The scheme offers a returnee (who had been an expat for a minimum of two years and wishes to set up own business back home) a capital subsidy of 15% (for loans up to Rs 20 lakh) and interest subsidy of 3% for the first four years.
The annual allocation for the project has gone up from Rs 2.5 crore in 2013-14 to Rs 15 crore in 2017-18. However, Norka Roots was able to release only Rs 1.25 crore as subsidy in 2015-16 while the total budget allocation was Rs 8.75 crore. It had utilized only Rs 3.54 crore against the budget allocation of Rs 12 crore in 2016-17.
Norka Roots, however, became hopeful of salvaging the scheme as the year 2017-18 saw a significant increase in utilization of funds to Rs 6.45 crore. Oficials are now confident of releasing the entire allocation as subsidy as it has entered into tie-ups with 11 banks and financial institutions for facilitating loans. The latest inclusions were Federal Bank and Kerala State Financial Corporation (KSFC), which have more than 800 and around 20 branches/regional offices, respectively.
"We had begun with just two banks, and now have expanded the NDPREM project adding nine more banks and institutions. More than 4,000 'loan-vending branches' across the state would ensure a complete success of the project in the coming years," said Norka Roots CEO K Harikrishnan Namboothiri.
Other banks and institutions are SBI, Union Bank, South Indian Bank, Bank of Baroda, Syndicate Bank, Kerala Backward Classes Development Corporation, SC/ST Development Corporation, Kerala Pravasi Vikasana Sahakarana Sangham and Kerala State Cooperative Agricultural and Rural Development Bank.
Norka Roots has also tied up with Centre for Management Development (CMD) to provide aspiring entrepreneurs proper guidance and support for preparing project reports.
"Though the returnees were into tourism and agriculture-related businesses initially, they are now more into manufacturing and industrial sectors," the official said.
The 2019-20 budget has earmarked Rs 81 crore for the welfare of non-resident Keralites. This includes Rs 25 crore for Santhwanam project to provide financial assistance in emergency situations to returnees who have income below Rs 1 lakh, Rs 5 crore for Loka Kerala Sabha and Global Pravasi Festival, besides Rs 15 crore for NDPREM project.
The scheme offers a returnee (who had been an expat for a minimum of two years and wishes to set up own business back home) a capital subsidy of 15% (for loans up to Rs 20 lakh) and interest subsidy of 3% for the first four years.
The annual allocation for the project has gone up from Rs 2.5 crore in 2013-14 to Rs 15 crore in 2017-18. However, Norka Roots was able to release only Rs 1.25 crore as subsidy in 2015-16 while the total budget allocation was Rs 8.75 crore. It had utilized only Rs 3.54 crore against the budget allocation of Rs 12 crore in 2016-17.
Norka Roots, however, became hopeful of salvaging the scheme as the year 2017-18 saw a significant increase in utilization of funds to Rs 6.45 crore. Oficials are now confident of releasing the entire allocation as subsidy as it has entered into tie-ups with 11 banks and financial institutions for facilitating loans. The latest inclusions were Federal Bank and Kerala State Financial Corporation (KSFC), which have more than 800 and around 20 branches/regional offices, respectively.
"We had begun with just two banks, and now have expanded the NDPREM project adding nine more banks and institutions. More than 4,000 'loan-vending branches' across the state would ensure a complete success of the project in the coming years," said Norka Roots CEO K Harikrishnan Namboothiri.
Other banks and institutions are SBI, Union Bank, South Indian Bank, Bank of Baroda, Syndicate Bank, Kerala Backward Classes Development Corporation, SC/ST Development Corporation, Kerala Pravasi Vikasana Sahakarana Sangham and Kerala State Cooperative Agricultural and Rural Development Bank.
Norka Roots has also tied up with Centre for Management Development (CMD) to provide aspiring entrepreneurs proper guidance and support for preparing project reports.
"Though the returnees were into tourism and agriculture-related businesses initially, they are now more into manufacturing and industrial sectors," the official said.
The 2019-20 budget has earmarked Rs 81 crore for the welfare of non-resident Keralites. This includes Rs 25 crore for Santhwanam project to provide financial assistance in emergency situations to returnees who have income below Rs 1 lakh, Rs 5 crore for Loka Kerala Sabha and Global Pravasi Festival, besides Rs 15 crore for NDPREM project.
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