Everything to know about Annal Ambedkar Business Champions Scheme (AABCS)

 An innovative scheme called the Annal Ambedkar Business Champion Scheme (AABCS) aims to boost business owners from underserved areas of India. By providing all-encompassing support, its vision is to close the gap between opportunity and ambition. Also, through this scheme, entrepreneurs get access to financial help, necessary training, and a range of other resources that fit their individual needs.

An Overview of Annal Ambedkar Business Champions Scheme

The Tamil Nadu government's Department of Micro, Small, and Medium Enterprises introduced the "Annal Ambedkar Business Champions Scheme (AABCS)." The Scheduled Caste and Scheduled Tribe tribes make up a tiny percentage of those who receive government subsidies for entrepreneurship, according to the Tamil Nadu government. The Tamil Nadu government launched this program to help and encourage the economic growth of SC/ST business owners. The new program would offer a 6% interest subvention and a 35% capital subsidy for loans used to buy machinery and equipment.

The Micro, Small, and Medium Enterprises Department will administer this initiative by working with the Industries Commissioner and Director of Industries & Commerce (ICDIC). FaMeTN, Entrepreneurship Development and Innovation Institute, and StartupTN will provide workforce and other resources to help the Industries Commissioner and Director of Industries and Commerce administer the Scheme.

The Secretaries of Finance, Micro, Small, and Medium-Sized Businesses, Adi Dravidar, and Tribal Welfare Departments, as well as the Industries Commissioner, Director of Industries and Commerce, Commissioner of Adi Dravidar Welfare, and Commissioner of Tribal Welfare, formed a State Level Steering Committee for the program. Once every three months, this committee will review the plan and recommend any required changes.

Annal Ambedkar Business Champions Scheme's Objective :

  • Offering various forms of incentives to business owners from scheduled castes and scheduled tribes is the primary goal of the Annal Ambedkar Business Champions Scheme.

  • The purpose of this program is to give the recipients possibilities for economic development.

  • In addition, the state's unemployment rate will drop as a result of this plan's adoption.

  • The government will establish a steering group at the state level to carry out this plan.

  • This plan was implemented by the Department of Micro, Small, and Medium-Sized Enterprises.

Eligibility for Annal Ambedkar Business Champions Scheme :

  • The candidate must reside in the Tamil Nadu State.

  • No minimal level of education qualification is required.

  • The recipients must be members of the SC/ST communities. SC/ST individuals must entirely own businesses subsidised by the program. According to current legislation, businesses can be sole proprietorships, partnerships, or companies, and they can have any legal personality that permits them to operate for profit.

  • The program can support both new businesses and the growth of already-existing businesses.

  • Businesses in the manufacturing and service sectors may qualify as qualified businesses. Additionally covered will be trading-related ventures that fall over the current Unemployed Youth Employment Generation Programme (UYEGP) aid criteria.

  • Beneficiaries must be at least 55 years old.

  • Beneficiaries will not be required to meet any minimal educational requirements.

  • The beneficiary shall not be prevented from obtaining further capital subsidies from programs run by organisations beyond the control of the Tamil Nadu government. This will also include the Union Government's Credit Linked Capital Subsidy Scheme (CLCSS), Coir Board programs, and others. As with the New Entrepreneur-cum-Entrepreneurial Development Scheme (NEEDS), all recipients will receive Entrepreneurship Development Training from the Entrepreneurship Development and Innovation Institute.

Selection of Beneficiaries in Annal Ambedkar Business Champions Scheme :

  • The District Level Sanctioning Committee (DLSC), which exists at the district level with the district collector for the NEEDS Scheme, will also act as the Sanctioning Committee for subsidy and interest subvention under the Scheme, except for additional members.

Proposals, along with recommendations, will be submitted by the District Industries Centre General Manager of the respective district to the District Level Sanctioning Committee (DLSC). The power to review and change any decision of the DLSC is reserved for the Industries Commissioner and Director of Industries and Commerce; besides, he can bypass the DLSC when he deems it imperative.

  • Based on this grouping of sanctions, the District Adi Dravidar Welfare Officer (DADWO) and, in the case of a Project Officer in the Integrated Tribal Development Project, would become members of the District Level Sanctioning Committee (DLSC).

Also, the District Level Sanctioning Committee (DLSC) shall have a minimum number of two members representing SC/ST industry associations; if such associating representatives are unavailable for that, private entrepreneurs or social workers belonging to the SC/ST community will be nominated by General Manager from District Industries Centre.

Benefits of Annal Ambedkar Business Champions Scheme : :

  • 35% capital subsidy on eligible project costs, up to a maximum of Rs 1.5 crore.

  • Land, plant, machinery, testing apparatus, and computer devices are all included in the project cost; the cost of the land should not exceed 20% of the total project cost. If a vehicle is essential to the business process, it will be taken into consideration.

  • For loans used to buy machinery and equipment, there is a 6% interest subsidy for a maximum loan term of ten years. Banks will receive an upfront interest subvention.

  • Interest subvention will be available for working capital approved for the project for a maximum of two years.

  • Include projects without a credit connection as well; in these situations, a back-end capital subsidy will be provided.

  • Beneficiaries are free to apply for extra capital subsidies from programs run by organisations beyond the control of the Tamil Nadu government.

  • Recipients who are members of SC/ST communities (wholly owned by SC/ST individuals).

  • Covering both new and growing businesses.

  • Also, covering projects connected to trading that fall outside the current Unemployed Youth Employment Generation program's assistance threshold.

How to apply online for the AABCS Scheme?

  • The candidate must complete the online application via the Micro, Small, and Medium Enterprises Department's official website-https://msmeonline.tn.gov.in/needs/index.php in order to be eligible for a loan under the AABCS Scheme.

  • The candidate must select the "Apply online" option- https://msmeonline.tn.gov.in/registration.php when they arrive at the official website's main page.

  • The candidate must select the "Register" option on the new page that displays on your desktop screen.

  • The candidate must fill out the application form completely and include any required supporting documentation :

Documents Required for Annal Ambedkar Business Champions Scheme -

  • Identity proof, i.e. copy of Election ID Card/ Aadhaar card

  • Copy of PAN Card

  • Passport size photo

  • Proof of age

  • Caste/Community Certificate

  • Residence proof

  • Bank account details

  • The candidate must promptly check their information after inputting it all and select "Submit" to finish the process.

How to check AABCS Scheme Status Online?

  • Go to the official website to see the applicant's AABCS Scheme 2024 application status.

  • The applicant must select the "Track status"-
    https://msmeonline.tn.gov.in/needs/status_verification.php?id=Track%20Your%20Status option when they arrive at the official website's main page.

  • After that, the screen will display a new page where the applicant needs to input their application or mobile number.

  • The applicant must promptly check their information after entering it all and use the "Submit" button to finish the process.

Important points to remember before applying for Annal Ambedkar Business Champions Scheme :

  • The program will include both new and seasoned business owners.

  • Any capital investments, including those in land, plant, machinery, testing apparatus, and computing devices, will be considered eligible project costs. In determining the subsidy, which should not surpass 20% of the project's overall cost, the cost of the land may be considered. Only in situations where a vehicle is essential to the operation of the business, such as in the case of a taxi or truck, earth moving equipment, bore well drilling, sanitary service equipment such as Jet Roding machines, etc., will it be included in the project cost.

  • While subsidy applications are being processed, this training will be provided to potential applicants or their wards. This goal will also be achieved by convergence with the government's current training programs, such as those offered by the Tamil Nadu Skill Development Corporation (TNSDC).

Repayment period for Annal Ambedkar Business Champions Scheme :

The repayment schedule will be set at a maximum of seven years following an initial moratorium period of no more than two years, depending on when the projects are implemented.

Collateral Security in Annal Ambedkar Business Champions Scheme :

As stated below, the collateral norms are set:

  • Instead of using permanent immovable securities like land and buildings as collateral, liquid securities can be used under Tamil Nadu's Annal Ambedkar Business Champions Scheme (AABCS). LIC regulations, bank deposits, and investments in qualified mutual funds are a few instances of liquid securities.

  • It is necessary to get collateral security worth at least 50% of the ggggg amount.

  • 100% collateral security must be provided for highly moveable machinery and equipment, such as computers, heavy-duty vehicles, rigs, JCBs, dies and moulds, and tailoring machines.

Conclusion

Encouraging businesses from marginalised areas in India has always been the goal of the Annasaheb Ambedkar Business Champion Scheme (AABCS). It seeks to ground aspirations by providing all-encompassing assistance that allows a person to realise the goals he cultivates for his company. Under this initiative, entrepreneurs will receive financial aid, training, and other resources based on their individual needs.

Additional Read:

Ways to get an unsecured business loan for MSME

MSME Loans: Top 7 Banks Providing Business Loans with Low Interest Rate

5 Ways to Get an MSME Loan Without Collateral

MSME Loans for Small Businesses

   For more  information, go to the link   https://www.psbloansin59minutes.com/knowledge-hub/everything-know-about-annal-ambedkar-business-champions-scheme
Location: India

Comments

Post a Comment

Popular posts from this blog

What is MSME Databank? Process and Eligibility Criteria Explained

  Micro, small, and medium-sized enterprises (MSMEs) are critical to a country's economic success. Recognizing the importance of MSMEs, the Indian government has launched a number of measures to support and promote them. One such endeavor is the MSME Databank , a critical instrument for promoting the growth and sustainability of MSMEs. In this blog article, we will look at the MSME Databank, its registration process, and eligibility requirements. Understanding these characteristics would help MSMEs better exploit the benefits of this effort to improve their operations and gain access to MSME financing . What is MSME Databank? The MSME Databank is an online site established by the Ministry of Micro, Small, and Medium Enterprises. It functions as a complete database for MSMEs in India, gathering and storing information about their activities, financial position, and other vital data. The MSME Databank's major purpose is to create a consolidated platform for data gathering and an...
Read more

Digital Transformation in MSME Finance: Tools and Strategies

  In today's rapidly evolving digital economy, the financial sector is undergoing substantial transformation. One of the most significant developments has been the digital transformation of MSME finance. Accessing financing has always been a challenge for Micro, Small, and Medium-sized Enterprises (MSMEs). However, with the introduction of digital technologies and techniques, MSME finance is undergoing a transformation, making MSME loans more accessible and efficient than ever before. Understanding the Digital Transformation in MSME Finance Digital transformation in MSME finance entails merging digital technologies into financial services specifically geared for MSMEs. This transformation comprises a variety of tools and tactics for streamlining processes, improving customer experiences, and increasing overall efficiency. Technology is transforming the MSME finance scene, from digital banking platforms to automated loan processing methods. The Need for Digital Transformation MSME...
Read more

5 Ways to Get an MSME Loan Without Collateral

  Starting or expanding a micro, small, and medium enterprise (MSME) can feel like steering into a maze, especially when it comes to securing financing. If you’re an entrepreneur, the prospect of needing collateral for a loan can be intimidating. But here's the good news! You can still obtain funding without putting your assets on the line. Let us delve into five practical and actionable strategies to help you secure an MSME loan without collateral . Ways to get an MSME Loans without collateral 1. Understand the Types of MSME Loans Available Before diving into the specific methods, it’s crucial to understand the landscape of MSME loans . The financial market offers a variety of loan types, and this knowledge can empower you to make informed decisions about your financing. Secured vs Unsecured Loans Secured Loans These loans require collateral, which can be property, equipment, or even inventory. If you default on the loan, the lender can seize the asset to recover their losses. W...
Read more