GATIDHARAAn Integration of Transport with Employment

GATIDHARA• Announced vide Labour Dept, G.O No 364-Emp/Emp./1M-9/2014 dated 18th August 2014.• The objective - to generate self employment in the Urban and Rural areas through promotion of transport service.• Labour Dept – Nodal Dept• Dir of Emp. – Implementing & Monit. Agency

GATIDHARA• Aim is to subsidize a component of vehicular loan taken by an un-employed youth.

• any entrepreneur who wants to be Self-Employed as a service-provider in Transport Sector by purchasing a small or medium vehicle

ELIGIBILTY• Any person aged 20 – 45

• Relaxable for OBC (3yrs) & SC/ST (5yrs)• Enrolled in Emp Bank• Whose income is less than Rs 25,000 pm

• Certificate from Pradhan, MLA, MP, Gazetted Officer• shall have to possess a valid Commercial

Driving License or the one who would work/drive on behalf of the applicant must have a valid commercial driving license.

• One per family only

ELIGIBILTY• Those who availed loan under BSKP,

USKP or any other scheme will also be eligible

• provided they have fully repaid their loans or

• there is no demand for repayment pending against them

• who received unemployment assistance in YUVASREE is also eligible

Key Features• Upon sanction of loan the registration of the

person in EmX & EmB would be kept in abeyance

• In case the person is a beneficiary under Yuvasree, the same would stop upon sanction of loan

• Granting of Route Permits by Dist Transp Auth. shall give preference to these applicants

• Gatidhara is applicable for – taking small & medium vehicles only – costing a max of Rs 10 Lakhs

Subsidy benefit under scheme• Grant of 30% of the project cost subject to a

maximum of Rs.1,00,000/-

• 5% of the project cost shall be provided by the entrepreneur as margin money

• balance 65% will be provided by the bank as a term loan or working capital loan

How to apply ?• applicants shall submit the duly filled in

applications with required documents to their respective Office of the Sub-divisional Officer(S.D.O)

• For Kolkata Municipal Corporation area, application should be submitted to the office of the Joint Director of Employment, Kolkata District at Purta Bhaban, Salt Lake.

How to apply ? cont’d

• forms can be downloaded from the Employment Bank website or may be collected from the S.D.O. office./ JDE ,Kolkata office

• ‘Income / Unemployment certificate’ may be issued by the Pradhan of the Gram Panchayats / Sabhapati of the Panchayat Samities / Borough Chairperson of Corporation / Chair Person of Municipalities/ M.L.A / M.P/ Any Group ‘A’ Govt. Officer

Processing of Appln• S.DO / Joint Director of Employment-in-Charge of

Kolkata District ( in case of Kolkata Municipal Corporation area) shall – receive & scrutinize the applications etc– place them before the Screening Committee through the

Member-Convener for screening and recommendation• The screening committees shall

– dispose of all pending cases in its monthly meeting– call the candidates for interview– send the recommended proposals in original to the

officer-in-Charge of the EmXs.• Applns previously recommended but rejected by the

bank may also be reconsidered by the committee

SCREENING COMMITTEEA. Sub-Division Level Screening Committee

a. S.D.O - Chairpersonb. Officer-in-Charge of the EmX – Member-Convenerc. Representative(s) of the banks - Membersd. Lead Bank Manager or his representative – Membere. R.T.O or his representative – Member.f. Jt. Dir. of Emp.(in charge of Dist.) - Member.g. Representative of District Industry Centre - Member

SCREENING COMMITTEEB. for Kolkata Municipal Corporation Area

a. Jt. Dir. of Emp. (in charge of Kolkata Dist.) - Chairperson

b. Officer-in-Charge of Regional Emp. Exchange – Member-Convener

c. Representative(s) of the banks - Membersd. Representative of S.L.B.C – Membere. Officer-in-Charge of Emp Exchanges in Kolkata -

Memf. R.T.O or his representative from Transp Dept –Memberg. Representative of DIC - Member

Procedure after recommendation• The concerned EmX shall

– send the recommended proposals to the respective Banks / Financial Institutions as “sponsored”

• Banks shall process the applications independently for sanction & disbursement of loan as per their norms

• Banks shall then grant sanction to the loan applications considered eligible & instruct applicants to deposit their margin money (5%) with Bank.

Procedure after recommendation• Bank shall submit requisition for

subsidy to Directorate of Employment .

• On receipt of subsidy & applicant’s contribution, the Bank shall arrange to disburse the amount in accordance with disbursement schedule

Procedure after recommendation contd

• No subsidy shall be retained by Bank undisbursed for more than a month, – failing which interest will be charged on Bank @

same Rate of Int charged for the loan by bank to the entrepreneur.

• entire project cost in favour of an applicant will be disbursed by the bank directly to the Authorized Dealer who will supply the vehicle

• Rejected cases– Shall be returned with reasons to the EmX

Definitions• Definitions:

– “Sponsored” = applications found eligible by Screening Committee & submitted to the bank

– “Sanctioned” = cases sanctioned by the bank

– “Disbursed” = disbursed by bank to dealer (i.e loan amount, subsidy & applicant’s margin money)

Sanction by Banks• On receipt of Sponsored Applications from EmX,

the Bank – shall process the applications independently.– may, in its turn, commence enquiry afresh.– perform all necessary Due Dilligence

• Then the Bank sanctions & informs the applicant to deposit their 5% with Bank.

• The Bank shall then submit requisition for release of ‘subsidy’ to Dir of Emp.

Rejected cases• Rejected cases shall be returned by Banks alongwith

reasons for rejection• EmX shall

– examine the rejected cases– Will get it suitably rectified by the applicant – resubmit those to the Bank.

• If however, the Screening Committee is not satisfied with the cause of rejection by bank, attention of the LDM for appropriate action would be drawn.

• Dispute(s) between the LDM and Screening Committee shall be placed before the District Level Monitoring Committee

Release of SubsidyAll requisitions would be sent to the DIRECTOR

OF EMPLOYMENT. Bank shall claim subsidy from Emp Directorate Emp Directorate shall

• examine the claims & release appropriate amount of subsidy in favour of the concerned Bank .

• And forward the advice/instruction through the fastest medium of communication available.

Disbursement of Loan• On receipt of subsidy & the applicant’s contribution, the Bank

shall – disburse the amount within 15 days

• No subsidy, henceforth, shall be retained by the Bank undisbursed for more than a month, failing which interest will be charged on the subsidy amount.

• The bank will disburse directly to the Authorized Dealer who will supply the vehicle.

• Rate of Interest• shall be at par with similar schemes being implemented by the State as

decided/determined by the RBI from time to time

REPORTS• The EmX shall send monthly returns (as

per Annexure –A) to the higher authorities• The Screening Committee needs to

meet regularly and maintain a record of their meetings

• All rejected cases list must be kept separately with the reasons ascribed thereto.

REPAYMENT OF LOAN• Repayment period - five to seven years. • The initial moratorium period shall be

prescribed by the banks concerned.• Any demand for recovery of loan or default

in repayment under the scheme shall be treated as public demand under the Public Demand Recovery Act, 1913.

Recovery, Advisory & Monitoring Committee

• shall meet once in each quarter• review the progress of the programme• monitoring and co-ordination amongst

different stake-holders• review the recovery of loans• Shall try for integration amongst all to

thwart out any impediments in the scheme

Recovery, Advisory & Monitoring Committee

A. State Level

• MIC, Labour Department ------------------------- Chairman• Secretary, Labour Department ------------------- Member• Secretary, Finance Department (Lending)------- Member• Principal Secretary, Transport Department ------ Member• Representative of S.L.B.C ------------------------- Member• Director of Employment--- ------------- Member Secretary

Recovery, Advisory & Monitoring Committee

B. District Level

• District Magistrate -Chairman

• Supdt. Of Police or his rep. - Member• One Karmadhaksya of ZP - Member• Lead District Manager of District - Member• Reps of 3 major banks in district - Member• Rep of Chrpsn of each Municipality- Member• RTO of the District - Member• Jt Dir of Emp-in-Charge of Dist.- Member-

Secretary

THANK YOU

Directorate of Employment, West Bengal