Karma Sathi Prakalpa 2026: The Government of West Bengal has introduced the Karma Sathi Prakalpa, a flagship scheme aimed at encouraging self-employment and entrepreneurship among young people across the state. The scheme focuses on helping individuals start new manufacturing units or small businesses in services and trade by providing soft loans and government subsidy.
This initiative is part of the state’s broader effort to generate sustainable employment opportunities in both rural and urban areas.
Objective of Karma Sathi Prakalpa
The main goal of the scheme is to support young and aspiring entrepreneurs who want to become self-reliant. Through financial assistance and interest subsidy, the government aims to:
- Promote new micro and small enterprises
- Encourage first-time entrepreneurs
- Create long-term self-employment
- Strengthen local economic activity
Who Can Apply for the Karma Sathi Scheme
Applicants must meet the following eligibility conditions:
- Age: 18 to 50 years
- Education: Minimum Class VIII pass
- Residency: Must be a resident of West Bengal
- Family Rule: Only one member from a family can apply
- Preference: Candidates registered with the Employment Bank get preference
Financial Assistance Under the Scheme
Under Karma Sathi Prakalpa, the government provides support in the form of loan and subsidy:
Maximum Project Cost
- Up to ₹2,00,000
Government Subsidy
- 15% of project cost, subject to a maximum of ₹25,000
Interest Subsidy
- 50% interest subsidy for timely repayment (up to 3 years)
- 40% interest subsidy for other cases (up to 3 years)
Loans are provided through State-owned Cooperative Banks on soft terms.
Applicant’s Own Contribution (Margin Money)
Applicants must contribute a small portion of the project cost:
- Projects up to ₹50,000: 5% for all applicants
- Projects above ₹50,000:
- 5% for SC/ST/Women/Minority/Differently-abled
- 10% for General category
The remaining amount is financed through bank loan and subsidy.
Eligible Business Activities
The scheme supports any new income-generating activity, including:
- Manufacturing units
- Service-based businesses
- Small trading activities
Both rural and urban business projects are eligible under the scheme.
How to Apply for Karma Sathi Prakalpa
Applicants can apply online or offline.
Online Application
- Through the Karma Sathi Portal
Offline Application
- Block Development Officer (BDO) office for rural areas
- Sub-Divisional Officer (SDO) office for municipalities
- Kolkata Municipal Corporation (for KMC area)
- MSME Facilitation Centre (DIC)
Application forms are free of cost.
Documents Required
Applicants must submit:
- Proof of Identity (with photo)
- Proof of residence
- Proof of educational qualification
- Proof of age
- Copy of SC/ST/OBC/Minority/Differently abled certificate, if applicable
- Project report
Applications are digitally processed and forwarded to cooperative banks for loan sanction.
Monitoring and Support System
- Karma Sathi Assistance Desk (KSAD) is available at the application offices
- District-level and state-level monitoring by MSME authorities
- Steering Committees oversee approval and grievance handling
Why Karma Sathi Prakalpa Is Important
Karma Sathi Prakalpa plays a key role in empowering youth by providing capital support, reduced interest burden, and structured guidance. It enables aspiring entrepreneurs to turn business ideas into reality without heavy financial pressure.
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