230/2024-2025

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

The Handholding Scheme comprises five key components, as outlined in the government guidelines. The main feature is a collateral free and Interest free bank loan. A financial support package for selected progress partners (beneficiaries), offering loans up to Rs. 50 lakh through partner banks. The state government will serve as a guarantor for these project loans under existing national credit guarantee schemes. Beneficiaries who consistently repay their loans may also benefit from interest subvention of up to 100%, providing significant relief and encouragement to those who meet their repayment obligations. This system of loan may be the first of its kind in India.

The scheme also includes the Chief Minister's Special Category Scheme, which provides grant-in-aid of up to Rs. 1 lakh. This grant is intended for individuals who is not in a position avail loans while having a livelihood project that can be significantly boosted by a small grant.

Another important component 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 Birdeye Chilli. If and when the farmer can not find a market rate less than the government declared rate, they shall be given support price upto the government rate. Furthermore, in a pilot phase, 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 much-needed boost to the state's economy, particularly in agriculture and small business sectors, by offering financial support and ensuring market stability for key crops.

Another important component is support to the implementing department.

Since the government of Mizoram declared year of consolidation, Handholding Scheme shall be implemented as a Pilot Phase for this financial year.