Mizoram signs MoA with banks for fiscal support to entrepreneurs, farmers in flagship scheme

Aizawl (The Uttam Hindu): The Mizoram government on Wednesday signed agreements with the partner banks to provide banking loans under the state's flagship initiative, the handholding scheme – 'Bana Kaih', designed to promote economic growth and self-sufficiency. The 'Bana Kaih' scheme, launched in September this year, is the state government's flagship programme aimed at fostering self-reliance and inclusive economic development in the state. The primary objective of the scheme is to contribute to the realisation of 'Viksit Bharat' (developed India) and the achievement of the United Nations Sustainable Development Goals (SDGs). On Wednesday, in the presence of Chief Minister Lalduhoma, a Memorandum of Agreement (MoA) was signed between the Mizoram government and three partner banks -- State Bank of India (SBI), Mizoram Rural Bank (MRB), and Mizoram Cooperative Apex Bank Ltd. (MCAB). The MoA was signed for loan disbursement under the 'Bana Kaih' scheme. The Chief Minister also launched the 'Chief Minister's Bana Kaih Innovation Challenge'.

A Mizoram government official said that one of the key components of the scheme is handholding to progress partners, under which eligible people are provided loans from the partner banks and the government acts as a guarantor for these loans. He said the government would provide interest subvention of up to 100 per cent for the partners who pay their loans regularly, thereby easing the financial burden on beneficiaries and encouraging timely repayment. 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 cannot find a market rate less than the government declared rate, they shall be given support price up to 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," the official pointed out. The official said the scheme also includes the Chief Minister's Special Category Scheme, which provides grant-in-aid of up to Rs 1 lakh. A senior official said that the 'Bana Kaih', comprises five key components, as outlined in the government guidelines with the main feature being 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.