Chief Minister Pu Lalduhoma Launches Mizoram’s Flagship ‘Handholding Scheme’ at Vanapa Hall

Aizawl, September 19, 2024: Mizoram’s Chief Minister, Pu Lalduhoma, officially launched the state’s flagship initiative, the Handholding Scheme (Bana Kaih), today during a ceremony at Vanapa Hall. The scheme aims to provide financial assistance and support to entrepreneurs and farmers across the state through targeted programs designed to promote economic growth and self-sufficiency.

The Handholding Scheme consists of five key components as outlined by government guidelines. The main feature is a collateral-free and interest-free bank loan, offering financial support packages of up to Rs. 50 lakh to selected beneficiaries (referred to as “progress partners”) through partner banks. The state government will act as a guarantor for these loans under the existing national credit guarantee schemes. Beneficiaries who consistently repay their loans may also be eligible for an interest subvention of up to 100%, providing significant relief and encouragement. This loan system is considered the first of its kind in India.

The scheme also includes the Chief Minister’s Special Category Scheme, which offers a grant-in-aid of up to Rs. 1 lakh. This grant is intended for individuals who are unable to secure loans but have livelihood projects that could benefit significantly from a small financial boost.

Another important aspect of the Handholding Scheme is market support. As part of this initiative, the government has introduced a Minimum Support Price (MSP) for four key crops: ginger, broom, turmeric, and Mizo bird’s eye chilli. If farmers are unable to sell their produce at market rates higher than the government-declared MSP, they will receive support to ensure they are compensated at the government rate. Additionally, as part of a pilot program, paddy from Kolasib and Mamit districts will be procured at a minimum support rate of Rs. 30 per kilogram starting this year.

This comprehensive scheme is expected to provide a significant boost to the state’s economy, particularly in the agriculture and small business sectors, by offering financial support and ensuring market stability for key crops.

Another critical component is the support extended to the implementing departments responsible for rolling out the scheme.

Since the Mizoram government has declared this the “Year of Consolidation,” the Handholding Scheme will be implemented as a pilot phase for this financial year.