Centre to provide ‘collateral security’ to aspiring Naga entrepreneurs

Our Correspondent Kohima, May 4 (EMN): Good news to aspiring entrepreneurs in the state – because the Nagaland chapter of the Confederation of Indian Tribal Entrepreneurs (CITE-NC) under “Startup India” programme will be launched on May 7 at 11 am at Hotel Japfü in Kohima. This was informed by Johny G Rengma, ‘non-official’ director of National Scheduled Tribes Finance and Development Corporation (NSTFDC), Ministry of Tribal Affairs, Government of India at a press conference held at Kohima on Friday afternoon. The Nagaland chapter of the confederation will be launched by the advisor to Industries and Commerce; and NIDC, Imnatiba. While pointing out the bottlenecks usually faced by aspiring entrepreneurs in the form of ‘availing loans and investors’ to start up their businesses, with most of the financial institutions reluctant to extend loans, Rengma said CITE-NC under ‘Startup India’ will provide ‘collateral security’ to entrepreneurs seeking financial assistance. He said this industrial policy by the government of India aims to give a head-start to numerous aspiring entrepreneurs belonging to scheduled tribes and scheduled castes. Under this scheme, Rengma informed, the National Scheduled Tribes Finance and Development Corporation (NSTFDC) will extend substantial financing, while the Nagaland Industrial Development Corporation Limited (NIDC) will function as the channel agency and the department of Industry and Commerce will be the nodal agency. Rengma said loan amounting to INR 1-25 lakh will be given out to entrepreneurs to start their businesses at 6% intestest rate per annum, which can be repaid within 5-10 years depending on the amount of loan. While regretfully pointing out that many corporations stand defunct, with only the NIDC who has been successfully engaging with local entrepreneurs, he expressed confidence that the state government would understand the burden of the corporation and continue to support them so that NIDC can continue to extend loan to budding entrepreneurs of the state. Also observing that in the absence of tribal affairs department in the state whereby planning department remains the nodal agency to implement all the schemes under Ministry of Affairs, Rengma suggested that a separate nodal department be identified to implement the schemes, which can also ease the burden of planning department.