Chief Minister’s Startup Scheme (CMSS)

The Chief Minister’s Startup Scheme (CMSS), launched on 15th August 2017, is approved by the Government of Sikkim to inspire the local unemployed youth such as school dropouts to develop new entrepreneurial ventures and self-employment opportunities in rural and urban areas of the State. It intends to establish Startups, both in manufacturing and service sectors that include agriculture/ horticulture/ food processing/ animal husbandry/ handloom and handicrafts etc. The scheme provides financial contribution assistance component of 25% of the project cost for financially viable/ bankable projects for the ventures that entail a total investment up to Rs. 20 lakhs.The educated youth from job seekers to job creators and in order to give support to the ‘Startup’ and ‘innovative projects’ in the state and to provide skills to the youth and potential investors to develop entrepreneurship “Chief Minister’s Startup/Innovation Projects/New Industries Scheme” has been formulated. The scheme envisages various incentives for startups so as to enable the entrepreneur’s success in their ventures.

The scheme also makes provision for the creation of incubation Centers in the host institutions in the State in order to build capacities, develop networking, establish the necessary infrastructure, and generate awareness. The basic objective of this scheme is the creation of self-employment and employment generation, the upgrading of the skills of entrepreneurs and providing them support to set up their units under professional guidance, promotion of innovation in focus areas, setting up of incubation centers, creating working space for startups and innovative projects, providing incentives, etc. This Scheme also aims at helping and hand-holding entrepreneurs to select viable projects in the potential areas in manufacturing and service sectors and train them to set up startups and subsequently manage and run their enterprises professionally.

Permitted Activites

All activities/ ventures that do not belong to the negative list of the scheme guidelines can be taken into consideration under CMSS. For some service sector activities, the applicant has to possess a valid commercial driving license. In order to open a manihari/ grocery shop, the applicant has to possess a valid trade license from a competent authority. For establishing a new boutique shop/ beauty parlour, the candidate has to possess at least three months certificate course from a professional institute/ body. Those activities related to the land purchase, construction of a building, excluding the purpose of development or up gradation of Tourism Department registered/ approved Homestays, is neither admissible nor considered under the project cost.

The following activities will not be allowed under CMSS for setting up micro-enterprises/ projects/ units.

Any industry/ business associated with production/ manufacturing or sale of items such as Beedi/ Cigar/ Pan/ Cigarette/ Gutka etc. producing/ preparation tobacco as raw materials.
Manufacturing of Polythene carry bags that isIdentification less than 20 microns thickness, and manufacture of carrying bags or containers made to recycle plastic for storing, carrying, dispensing or packaging of foodstuff and another item that causes environmental problems and that is banned from the State.

Aims and Objectives

Self-employment/ employment generation and income generation.
To promote new ideas/ products and processes suitable for commercialization through startups.
Set up Incubators/Incubation Centers in the state.
Handhold new enterprises and entrepreneurs.
Help entrepreneurs gain knowledge, expertise and avail assistance as provided under various schemes being implemented by State/Central Govt./Other institutions.
Facilitate and promote innovation
Facilitate startups and Innovation Projects
To facilitate creation of incubation space
Facilitate adequate investment to startups
Facilitate venture capital funding
Promote Human Capital
To promote Industrial development in the State.
To boost entrepreneurial spirit amongst the local unemployed youth and school dropouts of the State and influence them to set up any commercially viable/ bankable Startup ventures in any sector that includes agriculture/ horticulture/ food processing/ animal husbandry/ handloom and handicrafts etc. in the State abiding by the Government policies.
To instil self-confidence amongst the local youth by providing an enabling environment and initial financial handholding for their future socio-economic growth by becoming promoters of their ventures.
To make the owner of their startup venture instead of becoming an employee of someone else.
To provide a platform to transform any innovative idea into a commercially viable business venture for economic upliftment.
To generate equitable entrepreneurial opportunities in rural and urban areas of the State by setting up a new self-employment ventures/ projects by providing one-time non-refundable financial assistance in the form of promoter’s financial contribution component of 25% as margin money/ promoter’s financial contribution in PSU bank/ PSU financial institution that are approved project for funding under the schemes or any other credit linked central subsidy scheme.

Project Cost Specifications

The project cost includes Capital Expenditure and three months working capital requirement for the venture.
The cost of land should not be included in the Project cost. Cost of the ready built and long lease or rental work shed/ shop can be included in the project cost subject to restricting such cost of the ready built or long lease or rental workshop/ work shed to be addedmicroenterprises in the project cost that is calculated for a maximum period of three years.
CMSS is available to all new financial viable ventures, microenterprises, that includes village industries projects except the activities that are indicated in the negative list.
Existing old/ units are not eligible except for homestays registered/ approved under the State Department of Tourism.

Eligibility Conditions

The applicant has to be bonafide local youth who has to possess Certificate of Identification (COI) of the applicant or his/ her father possessing Sikkim Subject Certificate/ Certificate of Identification.
The applicant has to be unemployed and has to possess the educational qualification of class V from any recognised school.
Only one member of the family is eligible to avail the benefits of the scheme.
The applicant has to be between 15-40 years of age on the date of application.
Local unemployed youth from BPL families/ rural area residents are given preference in the scheme.

Required Documents

Two passport size photographs.
Attested copy of Sikkim Subject Certificate/ Certificate of Identification.
Attested copy of mark sheet and certificate that is issued by Board/ University.
Attested copy of Birth Certificate.
Two copies of the Project Report.
BPL certificate that is issued by DESME.
Copy of Electoral voter card for address proof.
Copy of Aadhaar Card.
Copy of valid Employment Card that is issued by the concerned BAC.

Financial Assistance

Startup projects that are under the manufacturing or service sector including agriculture/ horticulture/ food processing/ animal husbandry/ handloom and handicrafts etc. with a maximum project cost of Rs. 20,000 lakhs is eligible under the scheme.
Admissible financial assistance of 25% of the approved bankable project cost in the form of front ended promoter’s financial contribution for the bankable project that is approved by any PSU financial institution/ PSU bank.
The non-manufacturing sector projects such as tourist taxi operation project etc. that is invalid for grant of Central subsidy under the credit linked Credit sector subsidy scheme due to project cost restrictions, non coverage of the activity etc. the promoter’s contribution financial assistance under CMSS amounting to 35% of the approved bankable project cost shall be admissible.
For other non-manufacturing sector projects, the promoter’s contribution of financial assistance under CMSS remains at 25% of the approved bankable project cost.

Repayment of Loan

The promoter’s financial contribution component of 25% of the approved project cost under CMSS will be non-refundable one-time financial assistance. Repayment of Loan amount along with interest, obtained from PSU financial institution/ PSU bank under the scheme or any other credit linked central subsidy scheme would be the sole responsibility of the applicant as per the terms and conditions of the lending organisation/ central concerned scheme.

Application Process

Firstly visit the official website
At the homepage, scroll over the “Account” section present in the main menu and then click at the Register button.
Now fill out the online registration form.
Register as a startup, mentor, or incubator, then enter full name, email ID, mobile number, and password and click at the “Register” button.
Login here using the same method of credential
Then the HP CM Startup Scheme Login page will appear with the email ID, password, and verification code,

FAQs

Any Required document to submit

All the innovation enterprises would be required to submit only self-certified documents online or manually and the concerned department would issue provisional registration within 15 days from the submission of documents.

Who are eligible to apply under this Scheme ?

All Start-Ups/ New Industries/Innovation Projects Would Be Eligible For Availing Applicable Incentives For Components Covered Under This Scheme

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