The scheme was started last year and over 450 proposals have been received. Of this, the government has so far extended loans worth Rs 100 crore to 77 units. The state government is extending financial support to these people without any collateral.
Projects that are being considered for financial assistance include pet bottles plant, cotton ginning, precision engineering, high density polyethylene pipes, turbine blades, fly-ash bricks, hot mixing plants, granite tiles and mineral water projects, she said at a meeting with entrepreneurs on Monday.
While 10 per cent of the project cost is being given as margin money, subsidy forms 35 per cent, 40 per cent as loans and the remaining is met through equity contribution from the beneficiaries. The scheme also allows the entrepreneurs to plough back 25 per cent of the VAT paid while for women entrepreneurs it's 100 per cent.
Besides, the government is proposing to introduce loans at the rate of 25 paise to the SC/ST entrepreneurs on the line of self-help groups. She said the proposal was likely to get the nod in the next cabinet meeting and the government would provide guarantee for the loans being sanctioned by commercial banks or financial institutions.
The government is also allotting 16.2 per cent land in industrial estates to SC entrepreneurs and 6.6 per cent to ST entrepreneurs. Forty five SC/ST entrepreneurs have been given the land and an equal number would get it soon.
Andhra Pradesh State Financial Corporation (APSFC) managing director A Giridhar said APSFC had sanctioned loans worth Rs 1,006 crore and disbursed Rs 663 crore during 2007-08.
