Bhubaneswar, Feb 12 : The Odisha Cabinet on Monday approved a slew of proposals, including the launch of the new scheme 'SWAYAM' for interest-free loans up to Rs 1 lakh to rural unemployed youth and entrepreneurs intending to expand their existing business.

The state Cabinet has approved 26 proposals during the meeting presided over by Chief Minister Naveen Patnaik at the Lok Seva Bhawan here on Monday.

The eligible youth in the 18-35 age group residing in rural areas can avail loan of up to Rs 1 lakh under SWAYAM or Swatantra Yuva Udyami to start a new business or expand the existing ones.

'All rural unemployed youth or those with no outstanding loan for the same purpose from any Central/state government supported schemes in the age group of 18-35 years (18-40 years for special category) desirous of starting a new business or to expand their existing business will be provided interest-free bank loan as project cost up to Rs 1 lakh,' said official sources.

The applicants belonging to the families covered under KALIA /BSKY scheme or having income of less than rs 2 lakh per annum where "family" implies self and spouse can avail the loan.

However, those having outstanding amounts as loan or have defaulted in loan repayment are not eligible for the scheme. The employees of public sector units and government employees have also been excluded from the scheme.

'The government has decided to cover 1 lakh eligible rural youth under this scheme initially, and will spend Rs 448 crore for this out of its own budget. The scheme will be operational for a period of two years,' the sources added.

The Cabinet also gave its nod to supply two jute carry bags of 20 kg and 10 kg capacity to each of the 95,90,526 families covered under the Public Distribution System (PDS) for their daily use, free of cost.

Similarly, one-time livelihood assistance of Rs 1,000 in cash will be provided to each of the 95,90,526 PDS families.

The state government will bear the expenses required for the supply of 1,91,81,052 jute bags (Rs 278.69 crore) and Rs 1,000 cash ( Rs 959.05 crore).

In another major decision, the Cabinet gave its nod for a special incentive package for the establishment of different industries in the aerospace and defence manufacturing sector by the Indian multinational conglomerate Kalyani Group at Gajamara in Dhenkanal.

/IANS