With reference to ‘stand up india scheme’, which of the following statement is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs. 2. It provides for refinance through SIDBI. Select the correct answer using the code given below.
Both 1 and 2
Understanding the Stand Up India Scheme
The Stand Up India Scheme is a flagship initiative by the Government of India aimed at promoting entrepreneurship at the grassroots level. It focuses on providing financial support to specific categories of entrepreneurs to help them set up greenfield enterprises in the manufacturing, services, or trading sector.
Let's analyze the statements provided about the Stand Up India Scheme.
Analyzing Statement 1: Purpose of Stand Up India Scheme
Statement 1 says: "Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs."
This statement correctly identifies the primary beneficiaries of the Stand Up India Scheme. The scheme was specifically designed to encourage and facilitate entrepreneurship among:
- Scheduled Caste (SC) individuals
- Scheduled Tribe (ST) individuals
- Women entrepreneurs
The goal is to support one SC or ST entrepreneur and one woman entrepreneur per bank branch for setting up a greenfield enterprise. Therefore, Statement 1 is accurate regarding the purpose of the Stand Up India Scheme.
Analyzing Statement 2: Refinance through SIDBI in Stand Up India Scheme
Statement 2 says: "It provides for refinance through SIDBI."
The Stand Up India Scheme indeed involves the Small Industries Development Bank of India (SIDBI). SIDBI is designated as the coordinating agency for the scheme. A Credit Guarantee Fund for Stand-Up India (CGFSI) is created, and SIDBI manages this fund. Furthermore, SIDBI plays a role in providing refinance assistance to banks under the scheme, which helps banks extend loans to eligible entrepreneurs. Thus, SIDBI is integral to the financial mechanism of the Stand Up India Scheme, including providing refinance. Therefore, Statement 2 is also accurate.
Conclusion on Stand Up India Scheme Statements
Based on the analysis of both statements:
- Statement 1 correctly identifies the target beneficiaries of the Stand Up India Scheme (SC/ST and women entrepreneurs).
- Statement 2 correctly identifies the role of SIDBI in providing refinance under the scheme.
Since both statements accurately describe aspects of the Stand Up India Scheme, both statements are correct.
Therefore, the correct option is the one stating that both 1 and 2 are correct.
This scheme is crucial for fostering inclusive growth and economic empowerment by supporting entrepreneurs from underrepresented groups.
Revision Table: Key Aspects of Stand Up India Scheme
| Aspect | Description |
|---|---|
| Objective | Promote entrepreneurship at grassroots level. |
| Target Beneficiaries | SC/ST individuals and women entrepreneurs. |
| Type of Enterprise | Greenfield enterprise (first-time venture) in manufacturing, services, or trading. |
| Loan Amount | Between ₹10 lakh and ₹1 crore (inclusive of working capital). |
| SIDBI's Role | Coordinating agency, manages CGFSI, provides refinance. |
| Loan Purpose | Covering up to 85% of the project cost. |
Additional Information on Stand Up India Scheme
Beyond the points in the statements, here is some additional information about the Stand Up India Scheme:
- Loan Details: The scheme facilitates bank loans between ₹10 lakh and ₹1 crore for setting up a greenfield enterprise.
- Enterprise Ownership: In case of a non-individual enterprise, at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.
- Composite Loan: The loan is a composite loan covering term loan and working capital.
- Credit Guarantee: The scheme provides for a Credit Guarantee Fund for Stand-Up India (CGFSI) to cover potential loan defaults.
- Handholding Support: The scheme also envisages providing handholding support to potential borrowers through various agencies and a web portal.
- Greenfield Enterprise: Refers to the first time venture of the beneficiary in the manufacturing, services or trading sector.
The Stand Up India Scheme plays a vital role in encouraging new entrepreneurs from disadvantaged sections of society, contributing to economic development and job creation.
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