Aizawl, Sep 19 (IANS): Mizoram Chief Minister Lalduhoma on Thursday launched the state’s new flagship initiative, the Handholding Scheme - Bana Kaih - to provide financial assistance and support to entrepreneurs and farmers in the state through a series of targeted programs designed to promote economic growth and self-sufficiency.

Mizoram government officials claimed that the loan scheme was the first of its kind in India.

A senior official said that the ‘Handholding Scheme’, locally named ‘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.

The state government would serve as a guarantor for these project loans under existing national credit guarantee schemes, the official stated.

Beneficiaries who consistently repay their loans may also benefit from interest subvention of up to 100 per cent, providing significant relief and encouragement to those who meet their repayment obligations.

The official said that 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 are not in a position to 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 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.

He said that 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 Mizoram government has declared year of consolidation, Handholding Scheme shall be implemented as a pilot phase for this financial year, the official said.