Karnataka govt to push for 2,000 retail outlets under Samruddhi scheme

Karnataka has set a target of financing 2,000 franchise outlets under Samruddhi, the state government’s flagship entrepreneurship development and self-employment scheme, in a bid to promote the initiative launched two years ago.

The scheme provides seed capital of up to Rs 10 lakh for SC/ST entrepreneurs and has a total of 177 beneficiaries since its inception.

So far, 41 companies such as Chai Point, PumpKart and GK Vale have come on board. Bengaluru Urban, Ballari and Chikkaballapur have the highest number of beneficiaries.

Parshuram Shinnalkar, Managing Director, Dr B R Ambedkar Development Corporation, told DH that Rs 275 crore was allocated for the scheme in 2018. “Of the funds, the government still has Rs 154 crore for the benefit of various entrepreneurs,” he said.

Under the scheme, more than 150 franchisee outlets have started operations in different parts of the state.

The seed capital of a maximum of Rs 10 lakh will be deposited in an escrow account. A company under the scheme will receive the amount required to set up infrastructure for a beneficiary, he said. The seed capital will be released in phases based on the progress of a project.

On Monday, a tripartite agreement was signed between Social Welfare Department, the franchisees and beneficiaries to ensure 2,000 outlets of various firms are operational under the scheme by the end of 2021.

Based on various criteria, 2,500 beneficiaries were shortlisted from a total of 34,182 applications. The final selection of 2,000 beneficiaries will be based on a merit system that includes age and educational qualification.

According to data, of the 177 beneficiaries under the scheme, the highest was in Bengaluru Urban district with 22, followed by Ballari (17) and Chikkaballapur (16). As many as 24 of the 30 districts have beneficiaries in single digits and Chamarajanagar, Kodagu and Ramanagar district authorities have identified only one beneficiary till
date.