November 5, 2024

Establishing businesses is important for a country’s progress as it augments economic and employment growth. State and central governments are continuously launching new and attractive schemes to encourage their citizens to come up with innovative business ideas. Setting up an enterprise depends on one’s capacity, which differs from person to person. If the enterprise must come up in a rural environment, the dynamics are more complex compared to the urban context. Rural enterprises are business entities, which by the means of effective use of local resources, promote revenue generation and act as agents of social change at the grassroots level. These entities not only play a pivotal role in the wholistic development of the rural economy but also contribute to the economic growth of our nation. The establishment of a large number of profitable enterprises in a region can bring in government investment, attract private participation, generate local employment, bring partnerships and secure funding apart from channelising idle savings into business entities. According to the Government of India, “Any industry located in a rural area, village or town with a population of 20,000 or below and an investment of INR three crores in plant and machinery is classified as a village industry.” It is a revised definition of the previous one provided by Khadi & Village Industries Commission.As of March 31, 2022, India has more than 63 million MSMEs, out of which about 94 per cent are micro-enterprises. According to official data released on April 30, 2022, the country’s 6.33 crore MSMEs employ about 12 crore workers. According to World Bank Data 2019, about 65 per cent of the Indian population, most of them (about 58 per cent, as per 2018-19 PLFS data) earn their livelihood from agriculture and allied sectors. Objective of Rural Entrepreneurship Development Programme The Rural Entrepreneurship Development Programme aims to develop entrepreneurial and activity-oriented skills among the unemployed rural youths willing to create small or micro-enterprises by assisting agencies and NGOs involved in the conducting of Entrepreneurship Development Programs. Hence, the Rural Entrepreneurship Development Programme indirectly supports entrepreneurs through various agencies and NGOs. Challenges faced by rural entrepreneurs While India has marginally improved its ranking in terms of the ease of doing business index, the challenges and concerns faced by rural entrepreneurs in running and scaling their enterprises persist.The concerns range from the prevalent societal and gender-based biases to a lack of understanding of business, entrepreneurship and access to the requisite skills essential to run such enterprises. The entrepreneurs who have the courage to work on a business idea often face challenges in understanding the needs of the market, the viability of their product and its suitability for manufacture.Furthermore, those enterprises who manage to establish themselves in the market and generate some early-stage revenue often face difficulties. These range from inconsistent market linkages, severe competition from urban markets, a lack of infrastructural facilities and logistical challenges, inadequate understanding of the government support mechanisms available for them to unskilled labour for the effective delivery of product/service.Other challenges include the availability of working capital, the adoption to technology and the inability to diversify their products range. Rural Entrepreneurship Development Programs REDPs are conducted for a certain skill and unemployed rural youth are trained in these programs. The trainee has to be in the age limit of 18 and 50 years. Training period could differ from a minimum period of 4 weeks to a maximum period of eight weeks. Each program would support about 25-30 participants. Programs are held with the support of NGOs and the NGOs must be a registered and with a minimum experience of 3 years. Programs could be residential or non-residential. The NGO must have essential infrastructure, faculty support of their own or invite guest faculty. Pre-Training Phase In the pre-training phase, a detailed survey is done for identifying prospective business activities or market. Then publicity, awareness and motivational campaign are conducted for Entrepreneurship development in coordination with Banks or Government Departments or other NGOs. Training Phase Entrepreneurship Development Programs are typically 6-8 weeks long. Training module comprises the following: Achievement motivation Opportunity identification and guidance Knowledge related to supporting agencies and schemes Preparation of project reports/profiles Management of resources (men, material, money) Marketing aspects Book-keeping/Accounting The training program would include case-studies on prospective activities, field visits, practical work, visit to thriving units, etc.,  Post-Training Post training, the program endeavours to facilitate in the hand-holding or syndication of bank loan or creation of the MSME unit for a period of a minimum of 2 years. Recovery roadmap India has made tremendous progress towards creating a new business environment for enabling an increased participation of stakeholders in the workforce via enterprise creation. However, acceleration of these numbers is possible through the introduction of some key models, such as a marketing cooperative to promote products manufactured by rural enterprises thereby eliminating middlemen. The establishment of common facility centres, particularly for production, can also boost rural entrepreneurship. Building business acumen through capacity building and training is crucial for entrepreneurial success. It, coupled with an access to financial linkages at concessional interest rates, flexible repayment options and waiving of collateral security will spur the growth in this sector. FAQs What is the Rural Entrepreneurship Development Program (REDP)? The Rural Entrepreneurship Development Program (REDP) is an initiative aimed at promoting entrepreneurship in rural areas. It provides training, resources, and support to rural individuals to help them establish and sustain small businesses, encouraging economic growth and employment in rural communities. Who implements the REDP? REDP is typically implemented by various government agencies, financial institutions, NGOs, and organizations focused on rural development. In India, the program is often supported by institutions like the National Bank for Agriculture and Rural Development (NABARD) and other rural development bodies.

Taxation plays a vital role in the economy and makes a significant contribution to it. In India, the tax structure encompasses different types of taxes and duties like excise duty. To streamline the process of paying taxes and claiming returns, it is essential for individuals whose income comes under a taxable bracket to become familiar with the different types of taxes and duties.  What is Excise Duty? Excise duty is a kind of indirect tax charged on the sale of certain products. The customer does not pay excise duty directly to the authorities, but it is added to the cost of the product by the producer or merchant and then passed on to the consumer by way of increased prices. The Excise Duty Act, 1944 governs the regulations related to excise duty in India and the tax is administered by the Central Board of Excise and Customs. Fundamentally, excise duty is a tax levied on domestically produced goods. Generally, it is charged on their production and sale and is also known as CENVAT or Central Value Added Tax. Central Excise duty is an indirect form of taxation and is collected from a customer by a retailer or an intermediary. It is paid when goods are transferred from the production unit to a warehouse.  This particular tax is governed by two sets of acts – Central Excise Act, 1944 and Central Excise Tariff Act, 1985. Ideally, the Central Board of Excise and Customs is responsible for the collection of excise duty.  With the introduction of GST, several indirect taxes have been subsumed, including excise tax. Nonetheless, it is still applicable to a few items like petroleum, liquor, etc.  Types of Excise Duty Basic Excise Duty: Basic Excise Duty is levied under Section 3 of the Central Excises and Salt Act, 1944. Under this section, all excisable products apart from salt, manufactured of produced in India, are subject to Basic Excise Duty. Central Value Added Tax or CENVAT, as it is also called, is charged at the rates mentioned in the Central Excise Tariff Act. Special Excise Duty: Central Excise Duty is charged under Section 37 of the Finance Act, 1978. It is levied on all excisable products that are subject to Basic Excise Duty under Section 3 of the Central Excises and Salt Act, 1944. The rate at which Special Excise Duty is charged is mentioned in the Second Schedule to Central Excise Tariff Act, 1985. Education Cess on Excise Duty: According to Section 93 of Finance (No. 2) Act, 2004, Education Cess is an excise duty that must be computed on the aggregate of all excise duties including special excise duty or other excise duties, but not including Education Cess of excisable goods. Natural Calamity Contingent Duty: Section 136 of the Finance Act, 2001, has imposed the Natural Calamity Contingent Duty under clause 129 of the Finance Bill, 2001. The Natural Calamity Contingent Duty is charged on cigarettes, chewing tobacco, and pan masala. Excise Duty in case of clearances by Export Oriented Units: The Export Oriented Units have an obligation to export all the goods produced by them. However, if their final product is cleared in a domestic tariff area, the rate at which excise duty is charged will be the same as customs duty on a similar article if imported in India. Duties under other Acts: Certain duties as well as cesses are charged on manufactured goods under other Acts. The taxes, however, are collected under the administrative machinery of central excise. The rules and provisions of the Central Excise Act are responsible for the levy as well as collection of these duties and/or cesses/ Additional Duty on Goods of Special Importance: Additional Excise under Additional Duties of Excise (Goods of Special Importance) Act, 1957 is levied on certain goods of special importance. The ‘Additional Duty’ is charged along with excise duty. The Additional Duty on Goods of Special Importance scheme was implemented due to the suggestions made to the Government by manufacturers. The suggestions were made to avoid multiple taxes and duties at different levels. The levy of all taxes as well as their collection at one stage by one authority was expected to make it convenient to not only pay the tax, but to also administer it. Therefore, the Central and State Governments agreed to charge additional duty on certain items instead of charging sales tax. The additional duty was distributed among different states, and the State Government share the revenue from this duty based on the percentages specified in the second schedule of the Act. Additional Customs Duty commonly known as Countervailing Duty (CVD): This duty is charged on imports. Additional Duty on Mineral Products: Under the Mineral Products (Additional Duties of Excise and Customs) Act, 1958, additional duty must be paid on mineral products such as motor spirit, furnace oil, diesel and kerosene. Duty on Medical and Toilet Preparations: Under the Medical and Toilet Preparations (Excise Duties) Act, 1955, excise duty is charged on medical preparations. Special Additional Duty of Customs: Special Additional Duty of Customs is charged on items that are bound under the Information Technology Agreement (apart from information technology software), and also on certain raw materials or inputs for the manufacture of IT or electronic products. When Should You Pay Excise Duty Excise duty must be paid at the time the items are removed. Assessees must pay excise duty on items manufactured or produced. Excise duty should be paid on the fifth day of the following month from the date the products were taken from the warehouse or factory for the purpose of sale, according to Rule no. 8 of the Central Excise (Amendment) Rules, 2002.  If excise duty is paid online through netbanking, the payment is due on the sixth day of the next month. If the payment is paid in March, it must be made by March 31. Differences between Custom Duty and Excise Duty These pointers below highlight differences between custom duty and excise duty – Parameters  Excise Duty Custom Duty Place of manufacture  It is levied on goods that are produced in India. It is levied on goods

Kanyashree Prakalpa seeks to improve the status and well-being of girls, specifically those from socio-economically disadvantaged families through Conditional Cash Transfers by:Incentivizing them to continue in education for a longer period, and complete secondary or higher secondary education, or equivalent in technical or vocational steams, thereby giving them a better footing in both the economic and social spheres.Disincentivizing marriage till at least the age of 18, the legal age of marriage, thereby reducing the risks of early pregnancies, associated risks of maternal and child mortality, and other debilitating health conditions, including that malnutrition.It was also decided that the Scheme should confer more than just monetary support; it should be a means of financial inclusion and a tool of empowerment for adolescent girls. The scheme’s benefits are therefore paid directly to bank accounts in the girls’ names, leaving the decision of utilizing the money in their hands.To reinforce the positive impact of increased education and delayed marriages, the scheme also works to enhance the social power and self-esteem of girls through a targeted behavior change communication strategy. The communication strategy not only builds awareness of the scheme, but includes adolescent-friendly approaches like events, competitions, and Kanyashree clubs, and the endorsement of strong women figures as role models to promote social and psychological empowerment.As more and more girls remain in school, it is envisaged that they will use the opportunity to gain skills and knowledge to help them become economically independent. Even if girls do get married soon after they turn 18, it is expected that their education and enhanced social and emotional development will give them a better foundation for their adult lives. And over time, as entire generations of women enter marriages only after they have some degree of economic independence, it is expected that the practice of child marriage will be completely eradicated. Women will attain their right to health, education, and socio-economic equality. What is Kanyashree Prakalpa Scheme? West Bengal Kanyashree Prakalpa is a conditional cash transfer scheme launched by the Government of West Bengal in 2013. The scheme aims to empower and support the education of girl students from economically disadvantaged backgrounds in the state. Under the Kanyashree Prakalpa Scheme, girls between the ages of 13 and 18 receive an annual scholarship, known as the Kanyashree scholarship, to support their educational expenses.  Additionally, there is a one-time grant called the Kanyashree K2, which is provided to girls when they turn 18 years of age, provided they are unmarried and have continued their education. What are the Features of the Kanyashree Prakalpa Scheme? The scheme has two main financial components: Kanyashree Bond: A one-time grant of Rs. 25,000 to unmarried girls of 18 years of age who are pursuing regular education or vocational/ sports training. Annual Scholarship: An annual scholarship of Rs. 1,000 to unmarried girls aged 13-18 years who are enrolled in Class 8 or above.   Income Criteria: The scheme is open to girls from families with an annual income of less than Rs. 1.2 lakhs. The capping on annual income is not applicable for girls who have lost both parents, are physically challenged (40% disability), or are inmates of a J.J. Home under the J.J. Act, 2000. Discouragement of child marriage: The scheme also discourages child marriage by providing a one-time grant of Rs. 25,000 for higher education to girls who remain unmarried until they are 18 years old. Awareness and Outreach: Kanyashree Prakalpa involves the establishment of Kanyashree clubs in schools and colleges to engage students in discussions and activities related to gender equality and education. Collaboration with Other Programs: To maximize its impact, the Kanyashree Prakalpa scheme collaborates with various existing government programs, like Swachh Bharat Abhiyan (Clean India Mission) and the National Health Mission, to address issues related to sanitation, health, and hygiene. Beneficiaries: Approximately 18 lakh (1.8 million) girl students receive an annual scholarship, and approximately 3.5 lakh (0.35 million) girls receive a one-time grant of Rs. 25,000 each year under Kanyashree Prakalpa. Eligibility Age limit: Girls between the ages of 13 and 18 years are eligible for the scheme. Girls who have already turned 18 years of age are eligible to apply for the one-time grant under the scheme. Annual income limit: The scheme applies to girls from families with an annual income of up to Rs. 1.2 lakhs. The income of the girl’s parents or guardians will be taken into consideration while determining eligibility for the scheme. Educational criteria: Girls who are studying in classes 8 to 12 in government-aided or recognized schools are eligible to apply for the annual scholarship provided under the scheme. Marital status: Unmarried Girls are eligible to apply for the one-time grant provided under the scheme. Girls who are already married are not eligible for the scheme. Citizenship: The scheme applies only to girls who are residents of West Bengal and studying in schools or colleges in the state.  Documents Required Age proof document – a copy of the birth certificate A statement of declaration of being unmarried Income certificate Certificate of enrolment and attendance by Head of Institution of Education or Training Copy of certificate of disability (for disabled girls) Photocopy of bank passbook Kanyashree Prakalpa Scheme Application Procedure Step 1: Eligible girl student has to collect the application form from the respective educational institution. Step 2: Fill the following details to get the scholarship Personal Details Address Educational Institution Address Step 3: The applicant should sign on the application form and also get their parent’s signature. Apply along with documents to the respective educational institution. Step 4: Head of Department will verify the details furnished by the students and put an official stamp. Step 5: Obtain acknowledgement slip and keep application number for future reference. Step 6: After the successful submission of the application form, all details will be uploaded on the official webpage of Kanyashree.