Meghalaya Any Business Venture Scheme

PRIME Open Ventures Scheme is a component under the Chief Minister’s ELEVATE program launched by the Government of Meghalaya which aims to employ, engage and empower the youth of Meghalaya by promoting entrepreneurship and by providing easy access to credit through onboarding of various banks as financial partners of the program. To minimize the risk associated with credit flow, the Government is providing front end subsidy in the form of down payment and backend subsidy in the form of EMI co-payment (optional for some schemes).

Through this program, the entrepreneurs including individuals, collectives, villages organizations, various business entities and traditional institutions etc. will have easy access to various schemes on a single online portal. The program encompasses a number of sectors such as agriculture, horticulture, veterinary and animal husbandry, tourism, entertainment, sports, wellness and any business venture of economic interest for the people of the state.

Download the scheme guidelines

Scheme Details

About

Meghalaya has untapped potential. Grassroot innovators exist in the state whose ideas are not known in the mainstream. These people solve day to day problems which could be simple problems with already existing solutions or complex problems as well. The state of Meghalaya has a potential to grow its economy and this can be done through various business activities working together. Business entities are able to attract people from all ages to take part in what they have to offer. 

Recognizing this wealth of untapped creativity, Meghalaya envisions a brighter future. A future where innovation flourishes, where every individual has the opportunity to turn their innovative ideas into thriving businesses, and where our economy grows in harmony with the aspirations of our people.

To address this issue, the state of Meghalaya recognizes the need to support business entities that would not only solve problems, generate employment but also contribute to the growth of the economy of the state. Businesses such as restaurants, processing units, training centres etc, are able to provide places for engagement of people.  

With respect to the above, the government is launching the Open Ventures Scheme, a credit linked scheme aimed at providing entertainment to the citizens and promoting cultural enrichment for the people of the state. The selected applicants will receive financial aid to establish their business ventures which may include but not limited to training centres, music studios, processing units, production units, manufacturing units, packaging units, restaurants, food trucks, cultural and heritage units, waste management units, handicraft, handloom units and any other type of business entities not listed above may also apply.

  • Identifying demands present within the state:

The focus is on identifying existing market needs and gaps in the local economy, paving the way for strategic business development.

  • Supporting underserved business ventures:

The objective is to extend support to enterprises that have been historically underrepresented or lacked resources, fostering inclusivity in entrepreneurship.

  • Exploring the potential for developing products of national importance:

The aim is to investigate opportunities for the creation of products or innovations with significance on a national scale, contributing to the country’s growth.

  • Providing a platform to showcase their skills:

The initiative involves creating a platform where individuals and businesses can exhibit their talents, skills, and offerings to a wider audience.

  • 50 facilities to be supported across the state:

The plan includes providing assistance and resources to a total of 50 facilities, strategically distributed across the entire state.

  • Offering businesses an opportunity to showcase their uniqueness:

Businesses are encouraged to highlight their distinctive qualities, enabling them to stand out in the market and attract customers.

  • Overall economic development by providing people with job opportunities and increase in other economic activities:

By generating employment opportunities and stimulating various economic sectors, the overarching goal is to contribute to the comprehensive development of the region

SchemeProviding financial aid to 50 entrepreneurs from across the state to set up their business ventures in the state
Who can apply?

1.  Individuals from Meghalaya

2.  Registered firms in Meghalaya (such as Pvt Ltd, LLP, Sole Proprietorship etc, organisations “for profit”. However NGOs, SHGs, Societies are not eligible i.e., “non for profit” organizations)

(In case applicants wish to apply and require assistance in registering their firms, PRIME can provide the necessary support)

Total number of Units50 numbers limited to minimum one in each district based on applications
Launched ByPromotion and Incubation of Market Driven Enterprises (PRIME)
Nodal DepartmentPlanning Department
Implementing DepartmentMeghalaya Basin Management Agency (MBMA)
  1. A maximum of 50 units in the state with priority being provided to one application per district first based on selected applicants.
  2. A maximum of 50 applicants will be selected in the state of Meghalaya however giving priority to one application per district first i.e., unless every district has had one selected entrepreneur (provided applications are received and approved by the selection committee) no other district will have more than 1 selected application.

Eligibility

The eligibility criteria are designed to ensure that the selected applicants are residents of Meghalaya, possess relevant experience, have secured appropriate land arrangements, demonstrate commitment through contributing shares and are contributing to job creation.

  1. Residency requirement: All partners involved in the proposal must be residents of the state of Meghalaya. Valid identification documents demonstrating residency will be required as part of the application
  2. Experience requirement: Applicants must provide proof of relevant experience in the field related to the proposed project. Fresh applicants without demonstrated experience will not be considered. Experience can be substantiated through past projects, portfolios, certifications, or testimonials.
  3. Land Ownership or Lease requirement: The proposal must include proof of land ownership or a valid lease agreement for the proposed establishment. If the land is owned, documentation demonstrating ownership will need to be provided. If the land is leased, a valid lease agreement with the necessary tenure must be submitted. Such as Registered land, Bank statements, any uncleared loans, Criminal cases police verification, Name of the proposed place
  4. Contributing Share: Applicants must demonstrate their commitment to the project by providing proof of the required contributing share. This can include financial contributions, resources, or any other form of investment outlined. The evidence of the contributing share should be clearly presented in the application.
  5. Employment requirement: The proposed establishment must commit to employing locals in accordance with the funds they have received and the kind of unit they are running. This criterion aims to promote job creation and contribute to local employment opportunities. Proof of employment needs to be provided.
  6. Disqualification: Applications from individuals with any political affiliations, central and state government employees, permanent employees of PSUs and immediate family members of such individuals *, retired individuals who are drawing pension will not be entertained. 

Applications shall not be ordinarily considered for the following:

  1. Following individuals (currently employed as full-fledged or contractual, or retired and drawing pension) and their Immediate family members which includes spouse, parents, and children up to the age of 30
    1. state and central Government employees
    2. employees of public sector undertakings, subsidiaries of public sector undertakings and divisions of public sector undertakings etc.
    3. any individual whose job is concerned with politics such MLAs, MLCs, MPs etc. or seeking to hold a similar position in government
    4. registered class-1 contractors
    5. consultants who are currently engaged with state or central government
  2. Only one member from a family is eligible for the scheme.
  3. Pressure groups and organizations that are primarily political in nature


*Immediate family members include non-married children of such people, non-married individuals whose siblings are having such professions, spouse of someone who is in that profession, parents of such people in those professions.

Application Process

Submission Requirements

The proposal should substantially outline the intended plans of the entrepreneur following the following structure:

  1. Executive Summary (1-2 pages): Provide a concise summary of the project, highlighting the key activities and objectives.
  2. Profile of applicant(s) (1-2 pages): Outline the background of the applicants, including their relevant experience, previous ventures, training, certifications, and any other pertinent information.
  3. Facilities to be provided & Physical Setup (3-5 pages): Describe the plans for setting up the wellness, cultural, and entertainment centres, including the preferred locations, equipment required (with quotations and drawings), and any necessary documents such as No Objection Certificates (NOCs) from relevant authorities.
  4. Financials (2-4 pages): Present the budget for the project, including the estimated financial requirements, revenue models and any other financial considerations.
  5. Timelines (1-2 pages): Specify the proposed duration of the project along with major milestones, such as the start date, completion date, and significant stages or phases.
  6. Documentation (1-3 pages): In this section, you can request any additional supporting documents that may be relevant to evaluating the proposals.
  7. Any certificates or proof of past activities may be submitted in the annexure of the proposal.


Please note that these page lengths are approximate and can be adjusted based on the level of detail you wish to include in each section. It is essential to provide enough information to evaluate the proposals effectively while ensuring the RFP remains concise and focused.

Financing Plan

Financing Partners
  1. The Meghalaya Co-Operative Apex Bank Ltd (MCAB)
  2. State Bank of India (SBI)
  3. HDFC Bank
  4. The Shillong Co-operative Urban Bank Ltd.
Loan amount, loan-term, and repayment schedule
  1. The bank will sanction a maximum of 70% of the total project cost as loan or lesser if the applicant requests so.
  2. Total loan term will be for 15 years
  3. Repayment of the loan through EMI will start after 18 months of moratorium period. Total EMI months will be 162 months.
Annual rate of interest
  1. Annual rate of interest: as per decided by the bank
  2. Annual rate of interest will be fixed/floating for the loan term as per decided by the bank
Quantum and Nature of Financial Assistance:
  1. A maximum project cost estimated is ₹ 50 lakhs (Rupees Fifty Lakhs).
  2. The financial aid will be provided by the Government of Meghalaya as grant subsidy for the project.
  3. Up front subsidy will be up to the tune of 25% of the total project cost or ₹ 12.5 lakhs whichever is less, 5% would be the own contribution of the entrepreneur and the remaining 70% must be contributed via bank loans or own contribution. 
  4. A further maximum support of ₹ 5 lakhs (Rupees Five Lakhs) or 10% of the project cost whichever is less, would be provided via EMI support or backend support
  5. Additional support:
    • Mentoring via acceleration coaching will be done for recipients through PRIME 
Summary of the financing plan:

The figure below shows the total financial share between Government of Meghalaya and Entrepreneur.

Financial Aid Disbursement

Subsidy from the GoM will be transferred to the bank in favour of the entrepreneur within a specified time of receival of request from the bank.

In case the entrepreneurs fail to pay the documents and down payment within a specified time period of announcement of the results, the next applicant in the waiting list will be awarded the scheme.

Evaluation

Entrepreneurs will be evaluated through a three-step process.


Initial Screening and shortlisting

  1. The submitted proposal will undergo an initial screening of the submitted application to determine if the application align with the objectives and scope of the project. This screening will assess whether the proposed project addresses the stated needs and requirements.
  2. ‘Screening Committee’ will be consisted of Head of the Committee: PH, PRIME
 
Other members:
  • One representative from the partner bank(s)
  • To be decided*
Proposal submission, presentation and personal interview
  • The shortlisted applicants will have to submit a proposal
SoftcopyPdf to info@primemeghalaya.com
Hardcopy

PRIME Startup Hub Meghalaya, JN Stadium Complex, Polo

  1. The proposal shall include
    • detailed business plan 
    • financial projections and 
    • evidence of financial sustainability.
  2. Incomplete or ineligible proposals, not adhering to the guidelines outlined below, will be immediately disqualified, and eliminated from the challenge (e.g., not a citizen of the state, not adhering to prescribed proposal structure).
  3. Shortlisted applicants will be required to present their proposal before an Evaluation Committee. During the presentation, applicants will need to demonstrate the financial viability of their project. 
  4. The applicants will be invited at a specified date/time to pitch in front of the committee. The entrepreneur may pitch for 15 minutes. The committee may request for clarifications after the presentation.
  5. ‘Evaluation Committee’ at State Level will be consisted of
    • Chairman: ED, MBMA 
    • Other Members:
    • To be decided*

Criteria that would be used for evaluation:

  1. Attractiveness & Relevance of Proposed establishment
  2. Ambition regarding social impact that the establishment will have (such as employment, increasing the economic activity in the area etc)
  3. Relevant Experience and scope of the project
  4. Solid business case with credible path to profitability & long-term sustainability
  5. Any other points that support the project
Physical inspection of proposed land

Selected applicants from the second stage of the application process will undergo an inspection of the land and relevant documents submitted with the proposal. 

  • This inspection is to ensure verification the ownership or validity of the lease agreement for the proposed establishment. 
  • It will also assess the suitability and compliance of the land with the project requirements. 
Declaration of the final list of entrepreneurs
  • The best proposal in every district for every category will be selected and will be accepted for the financial support outlined above. 
  • The selection committee may announce multiple entrepreneurs from one district if applicants are found with promising results for the same district.
  • Final list of the entrepreneurs will be available online

Implementation Agency

    1. Government of Meghalaya has identified PRIME as the implementation agencies for the scheme.
    2. Coordinating Officers: PRIME
  • Usage of Government Funds: To ensure compliance with the intended use of the funds and to encourage proper allocation, the entrepreneur must ensure that the funds provided by the Government cannot be utilized for operational purposes or working capital. Funds are specifically allocated for the purchase of assets in the form of machinery or equipment required for setting up the wellness, cultural and entertainment centres. It is important to note that the funds cannot be used for the purchase of land.
  • Usage of Facilities: In the future if the Government of Meghalaya needs space to promote or conduct events of public significance, the recipients should prioritize allowing the usage of the facilities for these events as a first priority with negotiable rates.
  • Breach of Clauses: If any breach is found in the utilization of funds, such as the misuse of Government funds for operational purposes or other diversions of stated funds, a 16% annual interest charge will be levied on the applicant and may include legal action.
  • Utilization Certificates: Regular submission of bills and receipts in original need to be done to the banks. GST bills where ever possible would be preferred.

    1           Eligibility criteria for the applicants of the scheme

Economic Benefit

Illustration to understand the payment terms

Let’s consider an example to understand the various financial components of the project.

ComponentsValues
Total Project Cost50,00,000.00
Down payment/Margin Money15,00,000.00
Contribution by Entrepreneur2,50,000.00
Contribution by GoM12,50,000.00
 Loan Amount35,00,000.00
Annual Interest Rate13.4%
Term of Loan15
Total EMI Support5,00,000.00

Disclaimer: Annual interest rate may differ at the time of sanction of the loan and prevailing rate of the bank will be applicable.


The tables below show the details of shared costs between GoM and Entrepreneur for the project.

Down payment:

PayeeDown payment
Entrepreneur2,50,000.00
Loan35,00,000.00
GoM upfront subsidy12,50,000.00
Total50,00,000.00
Projected Revenue

The following is a projected revenue of a restaurant:

Restaurant
Investment of (50 lakhs)Revenue 23-24Revenue 24-25Revenue 25-26
Revenue1,00,00,000.001,10,00,000.001,21,00,000.00
Net Profit15,00,000.0018,00,000.0021,00,000.00

In the above example it is assumed that participants would go to the unit to purchase different kinds of consumable goods that would be available in a restaurant. The cost of operations would be with respect to maintenance, labour cost, utility cost etc.

Disclaimer: Note that the above is just sample projections. Revenues and profits would depend on the location of the unit and the type of services they can provide

FAQs

The Open Venture Scheme is an initiative designed to encourage both registered and unregistered firms to set up various kinds of enterprises in the state which would aim to solve issues that are present in the state as well as provide employment and contribute to the economy of the state. These would be innovative based ideas as well as imitation based business ideas. 

The scheme is one of the 15 schemes that is under the umbrella of the CM-ELEVATE program.

Planning Department is the nodal department for the scheme with PRIME MBMA being the department that launches the scheme.

Details of the eligibility criteria is in the scheme document

Registered entities would be companies such as firms that are registered as Pvt Ltd, LLP, Sole Proprietorship etc 

Firms that are not registered as above.

Individual entrepreneurs must be between 18 and 58 years of age.

There is no application fee.

The deadline for submission is 30 days from the date of opening of the application window.

Chartered Accountants for the purpose of making project reports

Helpline number for the same is shared on the website 

The applications will go through a round of screening by a screening committee, the screen applicants will then have to present before a selection committee which will then decide who will then decide the final list of candidates who would be eligible for the financial support.

The applicant will be informed when the application is rejected.

It is advisable that the applicants read and answer each question carefully and all changes should be made before submitting the application. No changes will be applicable after submission.

The scheme provides a maximum grant support of ₹17.5 lakhs the selected applicants.

The scheme provides a maximum grant support of ₹17.5 lakhs the selected applicants.

Yes, however the selection of the banks would be from a preselected list of banks.

Maximum period of 15 years

Interest rates may vary depending on the bank you choose for credit support. You should inquire with the selected bank for specific interest rate details.

Yes, however this will vary from bank to bank

25% of the subsidy will be upfront and 10% will be backend support

Yes.

Yes.

Virtually and Physically at PRIME

No.

A time period of 18 months

No further financial aid would be provided however support such as mentorship will be given to the concerned person.

Eligibility:

Details of the eligibility criteria is in the scheme document

Details of the eligibility criteria is in the scheme document

No.

Documents such as Epic, AADHAR or any other document such as NOCs from the village headman to prove place of residence. PAN Card to check the cibil score. 

Apply Now

Planning, Investment Promotion & Sustainable Development Department, Government of Meghalaya, 

Departments

  • Tourism Department
  • Animal Husbandry & Veterinary
  • Department of Agriculture and Farmers’ Welfare
  • Meghalaya Basin Management Agency, MBMA

Quick Links

Contact Us

Call Our Helpline: 1971 or 18002456851

Mail us at: help@cmelevate.in

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