Best practices in implementation of Stand Up-India

Introduction

Stand-up India aims to empower every Indian and enable them to stand on their own feet. The programme recognises the challenges faced by Scheduled Caste (SC), Scheduled Tribe (ST) and women entrepreneurs in setting up enterprises, obtaining loans and other support needed from time-to-time for succeeding in business. The programme, therefore, endeavours to create an ecosystem that facilitates and continues to provide a supportive environment for doing business. The objective of the Stand-up India scheme is to facilitate bank loans between `10 lakh and `1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch without collateral for setting up a Greenfield enterprise.

The focus areas with regards to implementation of Stand-up India are as follows:

• Increasing number of loans sanctioned and disbursed by Scheduled Commercial Bank (SCB) branches in the district to women and SC/ST entrepreneurs
• Increasing and addressing the requests by potential borrowers made on the Stand-up Mitra portal
• Connecting requests of potential borrowers to the right hand-holding entities
• Hand-holding events organised subsequent to sanction of loans
• Converging Stand-up India with existing schemes of Government of India or State Government
• Adopting innovative methods for implementation of the Scheme
• Ensuring transparency and accountability in implementation of the Scheme

Best Practices for Replication

Awareness:

In order to make Stand-up India successful, awareness campaigns were organised including melas, financial literacy camps, etc. Orientation programmes for banks and beneficiaries were organised via online portals, workshops, etc., to make bank officials disbursing loans are clear about the Scheme and the beneficiaries are well educated about the Scheme benefits.

Hand-holding (pre and post sanction of loan):

Some successful practices involve:

• Hand-holding of borrowers from the targeted community
• Chief Minister’s (CM) helpline is setup wherein beneficiaries can directly interact with CM’s Office for query resolution (Burhanpur, Madhya Pradesh).
• The hand-holding efforts of bank officials begin at the onset of an application received via the portal or through an offline channel.
• Efforts are being made to provide correct information and help the borrower on financial planning and business plan preparation and post disbursal of loan. The bank officials and other implementing agents ensure that the borrower is provided help proactively.

Effective co-ordination amongst implementing units:

Since the Scheme is to be implemented by banks and its branches, it is essential that all agencies and persons involved, i.e. SIDBI, LDMs, and bank officials are at the same page and understand the nuances of the Scheme and work effectively towards the Scheme implementation. Successful districts and their bank branches are able to sanction loans not only to the minimum mandate but above and beyond that. In such success stories, entrepreneurship within women, SC/ST communities is given a thrust by means of effective coordination.

Suggestions for Effective Implementation

• Bank officials were not aware of the Scheme details and thus are wary of sanctioning loans to larger number of people. Lack of motivation and incentives also hold back the officials in sanctioning loans. To overcome this hurdle, banks should be incentivised to motivate and reward officials and banks with large number of disbursements while offering due diligence.
• All the stakeholders of the programme should be educated about the programme by means of workshops and trainings to make banks and beneficiaries aware of the process and there is minimum hindrance in disbursing of loans.
• It is important to invest in IEC activities and create a general sense of awareness which reaches the target beneficiary. Also, the target beneficiaries should be motivated and handheld to avail such facilities. It is also important to build success stories in all geographical regions for motivating the masses.
• There is also lack of efforts for convergence with other schemes. The larger aim is to empower people to setup their enterprises and for this the masses have to be catered to by different schemes. The Stand-up India Scheme benefits the women and SC/ST communities. Stand-up India can leverage from enquiries on MUDRA, etc. and thus can reach out to persons interested in taking loans to start their enterprises. At the moment, there is not much synergy in implementation among schemes such as Startup India, MUDRA, Stand-up India, etc.
• It is important that there are facilitation centers, both physical and online, wherein people can approach with their ideas and plans and can get facilitated by handholding to avail the right scheme which fits their requirement. In essence, this would help in convergence of schemes and increase the coverage of beneficiaries.

Case Studies

Case Study 1: Kullu, Himachal Pradesh

Initiatives undertaken:

Kullu adopted a multi-thronged strategy which required budging and prodding at multiple levels to motivate the target sections of society. District Level Consultative Committee (DLCC) meetings under the chairmanship of Deputy Commissioner, were held on regular basis to review progress made under the programme.

A sustainable business growth model has been adopted which encourages beneficiaries to share their experiences and solve problems amongst themselves. Continuous handholding and support is being provided by the respective agencies and banks to the beneficiaries.

Awareness generation:

All Government agencies, specially the Block Development Officers were advised to take apt measures to popularise the programme, identify aspiring entrepreneurs and provide assistance to them.

• Information about the programme was disseminated at village level through Panchayat Secretaries in Gram Sabhas and other forums.
• Institutes imparting vocational trainings like RSETI etc. were also involved.
• Tailor made trainings were conducted to spread awareness for specific activities.

Impact (upto 31.12.2016)

• Under the programme, 20 bank branches sanctioned loans to SC/ST and women entrepreneurs.
• To beneficiaries, 24 loans amounting to `4.53 crore has been sanctioned.
• Employment has been generated for more than 2,000 youth under the Scheme.
• Several entrepreneurial success stories have come out in the District by means of Stand-up India Scheme.
• Disbursement of loan is hassle-free and loans are disbursed within 15-20 days from the date of application. 

Case Study 2: Shahdara, Delhi

Initiatives Undertaken:

Lead District Manager ensures transparency and accountability by contacting various customers in different bank branches. District Level Bankers Committee (DLBC), under the chairmanship of District Collector, also periodically reviews the implementation progress. Lead Bank in District Shahdara, in consultation with revenue officers and bank branches, organised 47 meetings during the period wherein approximately 7,700 clients/ prospective borrowers participated. Submission of applications is linked with AADHAAR, thereby, reducing the possibilities for submission of multiple applications by a borrower. Action is initiated by bank branches within 48 hours of receipt of the application under the Scheme. Loan is sanctioned within 15 days. Bank branches also encouraged home visits in order to increase participation. After sanctioning of loan, bank officers conduct periodical visits at the enterprise sites for inspection.

Awareness Generation:

• Awareness was generated about the programme using various methods, such as distributing pamphlets, publicity through Public Address system, bulk messaging to prospecting beneficiaries, putting banners in the branches and public places.
• Special camps are held to promote the programme among general public.
• Trainings for entrepreneur development, mentoring, skilling, financial training, etc. were imparted to potential borrowers.

District encourages banks, especially those who have not received any applications under the programme, to conduct special camps, spread awareness about the programme and identify potential borrowers. Banks are also advised by the District to counsel the prospective beneficiaries for convergence of the programme so that the scale of finance is broadened to meet financial requirement of the concerned individual/firm.

Convergence with Other Schemes:

Special stress is laid on the convergence of this programme with schemes such as Prime Minister’s Employment Generation Programme (PMEGP), Khadi and Village Industries Commission (KVIC) and MUDRA.

Impact (upto 31.12.2016)

• Under the programme, 21 bank branches sanctioned loans to SC/ST and women entrepreneurs.
• Loans to 49 beneficiaries were sanctioned under the Scheme, amounting to `9.36 crore.
• 25 loans disbursed under the Scheme, amounting to `3.98 crore.
• 300 persons have been engaged/ employed in the new ventures setup under the Scheme

Innovations Adopted in Implementation, Including Innovative use of Available Resources

• funding the right things
• doing it right
• doing it in the right amount

Other efforts made regarding promotion and awareness of the Scheme:

• Banks, especially those who had not received any applications under the Scheme, conducted special camps , spread awareness about the Scheme and identified the potential borrowers
• Visited home and working place, enquired from nearby residents/local about the background, experience and character of the applicants, i.e. prospective borrowers/beneficiaries
• Examined the project report and assessed loan requirement in aforesaid perspectives

Converging the Benefits

The Raipur district in Chhattisgarh converged Standup India scheme and the State Industrial policy to provide maximum benefit for entrepreneurs. This was enabled through focusing on manufacturing sector as it allows more benefits and extending support to weaker sections.

The subsidy available to weaker section (40%) and interest subsidy (75%) in the state policy was linked to the Stand-up India Scheme. Moreover, the benefits under stamp duty and electricity duty exemption provisions of the State Industrial Policy were availed for the Stand-up India applicants.

The Stand-up India Programme benefitted applicants under other schemes too. The Prime Minister Employee Guarantee Yojana (PMEGY) has a disbursal limit of `25 lakh whereas Stand-up India limit is `1 crore. Many PMEGY candidates wanted loans more than the limit, and they were thus connected to the Stand-up India scheme. Banks also benefited under Stand-up India as they have defined priority sector lending targets and the same was aligned to the Scheme.

The administration also used its discretionary power to help solve some of the Non-performing assets (NPA) problems faced by banks by linking their support to Standup India. Clearance of NPA under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act) was done.

The administration cleared `233 crore of NPA cases under the act and this was a huge motivation for banks. Since Ease of doing business (EoDB) has a single window clearance rule and the support of portals like Udyam Akansha, this was also linked with the Scheme.

In the past one-year, more than 11,000 units have been registered under Udyam Akansha of which 2,700 are from Raipur district alone.

Case Study 3: Burhanpur, Madhya Pradesh

Initiatives Undertaken:

The District has adopted easy processes in considering the applications of Women/SC/ST at sponsoring agency level and at bank branch level.

Step by step process followed:

• The application is examined by a Task Force Committee of the District.
• Thereafter, it is sent by the District Office to concerned banks who undertake an interview of the beneficiary, followed by physical visit.
• CIBIL screening and market enquiries are done to assist the beneficiary, in preparing DPR of the project (if the same is above `50 lakh).
• Thereafter, the KYC application is filled up. After 30 days of application, the loan is sanctioned and disbursal is done within a period of 45-60 days.

District Magistrate, Lead District Manager, GMDIC and other officials visit the units financed under the programme regularly to know the challenges faced by them. The District embraced State Government policies for tax relaxation and other facilities. Under the programme, banks maintains transparency for early disposal of applications.

Hand-Holding Support:

• The District has set up dedicated portals providing end to end services across the District.
• Jansunvayi, a forum held every Tuesday from 11 am to 1 pm allows applicants to raise any queries/issues faced after sanctioning of loan.
• There is the CM’s helpline, wherein beneficiaries can directly interact with CM’s Office for query resolution. Applications can be made through www.mponline.gov.in portal.

Awareness Generation:

The District has involved Panchayti Raj Institutions (PRI)/Local Self Government to generate awareness about the programme.

• Seminars and workshops are also conducted at various locations of the District.
  Banks helped in publicising the Scheme through distribution of pamphlets.
• Training programs were arranged for development of Entrepreneurship and Digital India at Rural Self Employment Training Institutes (RSETI) & Centre for Entrepreneurship Development Madhya Pradesh (CEDMAP).
• Meetings were conducted with Rotarians at Engineering/ Polytechnic College.
• Swarojgar Sammelan and Bank loan mela were organised at four locations, which witnessed participation of Honorable Cabinet Minister, Local MLAs, Janpad Adhayaksha, Zila Panchayat Sadasya, Bankers and 500+beneficiaries, among others.
• The District has used MP-online Government website, MSME website, electronic and print media, District website and social media like Facebook, WhatsApp, etc. for successful implementation of the program.
• 15 Task force Committee meetings and five District level Coordination Committee meetings were organised in the presence of public representatives.

Convergence with other Schemes

Stand-up India program in Burhanpur has been interlinked with Mukhyamantri Yuva Udyami Yojana (MMYUY), Prime Minister Employment Generation Programme (PMEGP), MSME and Mukhya Mantri Sadak Yojana (MMSY).

Impact (upto 31.12.2016)

Under the programme, 13 bank branches have sanctioned loans to SC/ST and women entrepreneurs. In the District, loans have been sanctioned/ disbursed to 27 units, of which 15 are manufacturing units, nine are service units and three are trading units. Proposals of eight units are under evaluation for sanction of loan under Stand-up India.

Case Study 4: Raipur, Chhattisgarh

Initiatives undertaken:

The District devised a Standard Operating Procedure (SOP) for handling requests made by applicants on Stand-up Mitra Portal. The SOP details various steps required to be taken for processing of applications under the programme.

The District has prepared a list of Frequently Asked Questions (FAQs) to address anticipated queries of the borrowers/applicants. A Single Window System has been set up by the District where an applicant is asked a few questions to assess his requirement and accordingly, his request is forwarded to the bank or concerned department/ organisation. The response time for handling requests is less than 15 days in the District. Based on the project, applicant is advised about the clearances required and he/she can apply for the same through the portal.

The request for handholding, training, infrastructure and certification support are received both online and offline. Thereafter, the borrower is redirected/advised to contact the following institutions/organizations:

• District level Coordination Committee, Raipur
• Directorate of Industries, Raipur
• MSME Directorate, Raipur
• District Industries Centre, Raipur
• Private partners (Matrix Foundation/ Ojas Foundation/ AISECT Training Centres)

Monitoring:

A Special Monitoring Committee for Stand-up India under the Chairmanship of District Collector has been constituted. The committee with CEO - Zila Panchayat, Lead District Manager of Bank (LDM), Chief General Manager (CGM) District Industries Centre, banks and other stakeholders holds periodic meetings for monitoring the implementation of the programme including requests for handholding.

Nine district level workshops have been conducted under the Chairmanship of District Collector, wherein, all stakeholders (beneficiaries/ banks/ industry department/Stand-up India Help Centers etc.) met and discussed issues related to disbursement of loan and further providing help required by beneficiaries in setting-up of enterprises. Task-Force Committee for Prime Minister Employment Guarantee Programme (PMEGP) and Mukhyamantri Yuva Swarojgar Yojana (MMYSY) holds meetings in presence of public representatives.

Hand-holding support:

Udyami helpline (1800-233-3943) has been established for helping entrepreneurs who wish to seek information about Stand-up India and other schemes, including the procedure, eligibility formalities to be completed, etc.

Awareness Generation:

In the district, the programme was publicised by holding State level Workshop. Advertisements are published in print and electronic media. 5 District level workshops have been organised to encourage and educate women and SC/ST population.

140 Stand-up India Help Centers (SUHCs) have been set up in the District. The programme was also publicized through use of social media including WhatsApp groups, brochures, posters and banners. Camps and stalls of Stand-up India are put up at events such as Collectorate Jan Darshan (every Monday), Lok Suraj Abhiyan and Jan Samasya Nivaran Shivir (twice in a month), Digi Dhan Mela, etc.

Convergence with other schemes:

One of the key initiative undertaken by the District is convergence of Stand-up India programme with other State Government Schemes. Stand-up India cases has been made eligible for incentives under the category of priority sector (selected sunrise sectors identified by state) through State’s Industrial Policy. The margin money under MMYSY (Mukhyamantri Yuva Swarojgar Yojana) is being used for Stand-up India cases. Similarly, all Stand-up India cases are eligible under weaker section and priority sector lending for banks as per RBI guidelines.

Impact (upto 31.12.2016)

Under the programme, 83 bank branches have sanctioned loans to SC/ST and women entrepreneurs. Loan amount of `25 crore has been sanctioned to 93 units, of which 83 are women and 10 are SC/ST. Loans amounting to `8.88 crore have been disbursed to 59 units.

Case Study 5: Ujjain, Madhya Pradesh

Initiatives Undertaken:

Ujjain Stand-up India has been locally rechristened as UMANG. The District Administration has laid down well defined procedures as per the Stand-up India Guidelines.

1. On receipt of online application, the proposal is reviewed by a team of three officers, viz. Lead District Manager (LDM), NABARD, District Development Manager (DDM) and SIDBI.
2. Thereafter, the applications are segregated as Ready borrower and Trainee borrower.
3. The application of ready borrower is forwarded (online/ offline mode) to the concerned Line Department for preparation of DPR.
4. After DPR preparation, the Line Department forwards the proposal to the concerned bank for sanction and disbursement and provides help to the borrower/ beneficiary in banking procedures.

Hand-Holding Support:

• For a trainee borrower, Training Need Assessment (TNA) form is filled. Depending upon the training needs of borrower, he/she is re-directed to one of the 17 designated training centers of the Ujjain District.
• The District used innovative ideas, such as Catch them Young, for targeting young beneficiaries to avail the scheme.
• Dedicated public grievance helpline has been established for helping entrepreneurs.

Awareness Generation:

Stand-up India in Ujjain has been given wide publicity under the name of Umang.

• Hoardings and flexes have been put up in banking institutions throughout the District.
• Vernacular Urdu language pamphlets were used for wider coverage.
• Social media campaigns like WhatsApp groups and Facebook were used for creating awareness.
• A dedicated Mobile App Hello Ujjain has been rolled out for better implementation of the programme.
• Local bodies, business groups and communities, women associations and Rotary clubs were involved for in the implementation of the programme.
• Free training programmes were organised for the beneficiaries of PMEGP which also included the entrepreneurs of Stand-up India.
• Awareness programmes were conducted through ITIs, particularly women ITIs.
• Workshops were conducted by SIDBI and NABARD for creating awareness.
• Bank camps in Chief Minister Kisan Maha Sammelan campaign were organised for marketing.
• Free debit cards were distributed to beneficiaries for promoting cashless transactions.

Convergence with Other Schemes:

Stand-up India has been interlinked with existing schemes of State Government and Government of India. Benefits of schemes such as Chief Minister’s flagship scheme of ‘CM YUVA Udyami’, Prime Minister’s Employment generation Programme (PMEGP) and Rural Self Employment Training Institutes (RSETI) from NABARD are also provided to entrepreneurs under Stand-up India. Preference is given to the beneficiary of Stand-up India in setting up of enterprise under Farmer Producer Organisation (FPO) fund of NABARD. The District Administration also plans to give preference to Standup India beneficiaries in Government procurement.

Impact (upto 31.12.2016)

Under the programme, 31 bank branches have sanctioned loans to SC/ST and women entrepreneurs. 83 loans have been sanctioned to 50 women and 33 SC/ST entrepreneurs.

A total of 63 loans have been disbursed. This has resulted in generation of direct employment of 4000 persons and indirect employment of 10,000 persons. Potential borrowers have given good response to the programme and requested for training on eco-friendly products, agriculture and allied activities, health, textiles, financial literacy, digital banking, etc.

Strength in Collaboration

Medchal-Malkajgiri District in Telangana embraces a wide range of industries, educational institutions and natural resources. With a population of 28 lakh, the district comprises of two Revenue Divisions and 14 Mandals with 29 Commercial Banks through 482 branches.

Medchal-Malkajgiri District converged Stand-Up India Scheme and state industrial policies to provide maximum benefit to entrepreneurs. Telangana State Industrial Development and Entrepreneur Advancement (T-IDEA), and Telangana State Programme for Rapid Incubation of Dalit Entrepreneurs Incentive Scheme (T-PRIDE) were merged. A single window clearance through Telangana State Industrial Project Approval and Self Certification system (TS-IPASS) was also introduced.

Through T-IDEA, the State Government is now supporting the project with Investment subsidy of 15% for women and 35% to SC/ST besides stamp duty exemption, VAT and CST exemption for five years and power reimbursement. The State is also offering skill development facilities under Central Institute of Plastic Engg. Technology (CIPET), Indian Institute of Packaging (IIP) and support institutes like NIMSME, MSME-DI for EDP trainings.

Stand-up India is also benefitting traders besides industries and services taking up green field projects. To reach the target beneficiaries, wide publicity is was done by the District Administration through DICCI, women organisations and banks.

Banks further guided beneficiaries by linking with handholding institutions and making them loan ready. Co-ordination meetings with bankers, and promoting institutions and entrepreneurs, let the District achieve 383 sanctions during 2017-18.

Helping the Weak Stand

To support entrepreneurship among women and SC & ST communities, the Gwalior District Administration in Madhya Pradesh and all stakeholders promoted Stand-up India scheme through various hand holding agencies like DIC, NABARD, RSETI, FLCC and others.

The District Administration took all possible steps to mitigate challenges. All departments were instructed to provide top priority to green field enterprises being set up under Stand-up India Scheme. The forum was used for beneficiaries for whom regular meetings were organised by LDM and NABARD to sort out their problems. Additionally, the administration used its discretionary power to help solve some of the Non-Performing Assets problems faced by banks by linking their support to Stand-up India. Banks were advised to promote this priority programme in all DLCC meetings.

State sponsored agencies were also advised to provide maximum benefit to the entrepreneurs. District Administration organised fairs wherein Stand-up India was popularised among people. With the focus on manufacturing sector, assistance was finally extended to weaker sections under the State policy and linking the same to Startup India. Further, the subsidy and interest subsidy in the State policy was linked to the Stand-up India Scheme.

Source : Emulating Excellence Takeaways for Replication