Telangana Congress aims to unveil Rajiv Yuva Vikasam scheme on June 2

Hyderabad: The Telangana Congress government is set to unveil the Rajiv Yuva Vikasam scheme on June 2, coinciding with the state's Formation Day.

This comprehensive programme represents an effort to address unemployment while strengthening the party's youth support base, which proved instrumental in their 2023 Assembly election victory.

This ambitious initiative targets five lakh unemployed youth from marginalised communities, equipping them with subsidised capital to launch their own businesses and become job creators.

Citing the All India Census of MSMEs, the government estimates that each new unit will create an average of 4.4 jobs.

With 5 lakh businesses launching simultaneously, the Telangana government anticipates the creation of 22 lakh new jobs, both directly and indirectly, a significant boost to the state’s economy and a potential model for addressing unemployment nationwide.

The timing and target demographic of this announcement underscore its political significance, as the Congress government seeks to consolidate support among the youth that contributed significantly to their electoral success.

With a substantial allocation of Rs 6,250 crore, the scheme specifically prioritizes youth from Scheduled Castes (SC), Scheduled Tribes (ST), Backward Classes (BC), and Minority communities who possess business ideas but lack financial resources.

Beneficiaries will receive loans with unprecedented subsidies: 100 per cent for loans up to Rs 50,000, 90 per cent up to Rs 1 lakh, 80 per cent up to Rs 2 lakh, and 70 per cent up to Rs 4 lakh.

This means a youth establishing a Rs 4 lakh enterprise would only need to repay 30 per cent of the loan amount. As part of this, it has been decided to issue proceedings for units costing up to Rs 1 lakh in the first phase on June 2.

The response has been overwhelming, with over 16.22 lakh applicants seeking support. The government has meticulously selected the first 5 lakh beneficiaries for this year, ensuring 80 per cent represent marginalised groups with BC: 31.44 per cent, SC: 29.36 per cent, ST: 19.59 per cent.

Additionally, 25 per cent of spots have been reserved for women and 5 per cent for persons with disabilities.

A phased rollout begins June 2-9 with the distribution of sanction letters across all constituencies. This will be followed by intensive Entrepreneurship Development Training from June 10-15 delivered by government-empaneled agencies to sharpen skills in chosen sectors.

The grounding of business units starts June 16, with a strict deadline for all ventures to be operational by Gandhi Jayanti on October 2.