Sikkim Skilled Youth Start-Up Scheme (SYSS): Complete Guide for Self-Employment Support

Sikkim Skilled Youth Start-Up Scheme self employment support for youth The Sikkim Skilled Youth Start-Up Scheme (SYSS) helps unemployed youth start their own business by providing bank loans, government subsidy, and entrepreneurship training.

Unemployment among educated youth remains a serious issue in Sikkim. Despite improvements in education and the availability of skill-development programs, many young people still find it difficult to secure stable employment, mainly because opportunities in both the government and private sectors are limited. To address this problem in a long-term and practical manner, the Government of Sikkim introduced the Sikkim Skilled Youth Start-Up Scheme (SYSS) through the Department of Commerce and Industries.

Rather than depending only on conventional jobs, the scheme motivates young individuals to become independent entrepreneurs. Through financial support, organized training, and continuous institutional guidance, SYSS seeks to help youth build their own businesses, create employment opportunities, and contribute to the growth of the state’s economy.

Objective of the Sikkim Skilled Youth Start-Up Scheme

The primary goal of the Sikkim Skilled Youth Start-Up Scheme is to promote self-employment and entrepreneurship among educated but unemployed youth. The scheme supports aspiring entrepreneurs in starting small and medium-scale businesses that can generate steady income and create additional employment opportunities.

Through this initiative, the government seeks to build a culture of entrepreneurship, reduce unemployment, and ensure balanced economic growth across both rural and urban regions of Sikkim.

Important Dates

The Sikkim Skilled Youth Start-Up Scheme is a continuous and open scheme, allowing eligible candidates to apply at any time during the year.

  • Application Start Date: Open throughout the year
  • Last Date to Apply: No fixed closing date
  • Entrepreneurship Training: After provisional selection
  • Loan Disbursement: After successful training and bank approval

Applicants are advised to stay in touch with their respective District Industries Centre (DIC) for the latest updates.

Application Fee

There is no cost involved in applying for the scheme.

  • Application form: Free
  • Entrepreneurship training: Free of cost
  • No processing or departmental charges

This ensures that youth from all financial backgrounds can access the scheme without any burden.

Overview of the Sikkim Skilled Youth Start-Up Scheme

Sikkim Skilled Youth Start-Up Scheme overview for self employment support
The Sikkim Skilled Youth Start-Up Scheme is a government initiative that supports unemployed youth in Sikkim by offering loans, subsidy, and training to promote self-employment and entrepreneurship.

The Sikkim Skilled Youth Start-Up Scheme (SYSS) is a government-backed entrepreneurship initiative that provides bank-linked loans along with back-ended subsidies to eligible unemployed youth across the state.

Key Features of the Scheme

  • Financial assistance through scheduled banks
  • Government subsidy to lower repayment pressure
  • Mandatory entrepreneurship training
  • Coverage across rural, urban, and remote areas
  • Support for diverse business sectors

Only financially viable and bankable projects are approved under this scheme.

Area of Operation

The Skilled Youth Start-Up Scheme is implemented across all districts of Sikkim, ensuring statewide coverage.

  • Rural regions
  • Urban localities
  • Semi-urban and remote areas

This wide reach helps promote inclusive and balanced economic development.

Financial Assistance and Subsidy Details

Although SYSS is not a salaried employment scheme, it provides startup funding that enables beneficiaries to earn a regular and sustainable income.

Subsidy Structure

  • 50% subsidy for Below Poverty Line (BPL) applicants
  • 35% subsidy for non-BPL applicants
  • 50% subsidy for Persons with Disabilities (PWD)

Project Cost Limits

  • Minimum project cost: ₹3 lakh
  • Maximum project cost: Up to ₹20 lakh (depending on the business activity)

Nature of Financial Support

  • Loan sanctioned by a bank
  • Subsidy kept as a fixed deposit
  • Subsidy adjusted against loan repayment after the lock-in period

Promoter’s Contribution

Applicants are required to invest between 5% and 15% of the overall project cost, in line with the guidelines set by the bank. This ensures personal financial involvement and commitment toward the business.

Business Activities Supported Under SYSS

The Sikkim Skilled Youth Start-Up Scheme supports a wide range of income-generating ventures, including:

  • Agriculture and allied activities
  • Dairy, poultry, piggery, and animal husbandry
  • Organic farming and greenhouse cultivation
  • Food processing and small manufacturing units
  • Cottage industries, handicrafts, and bamboo products
  • Tourism-based businesses such as homestays and adventure tourism
  • IT and IT-enabled services
  • Retail shops, bakeries, restaurants, and beauty salons
  • Diagnostic centers, training institutes, and service workshops

Each activity has a specified maximum project cost as per scheme guidelines.

Eligibility Criteria

To apply for the Skilled Youth Start-Up Scheme, applicants must meet the following conditions:

  • Must be a permanent resident of Sikkim
  • Valid Certificate of Identification (COI) required
  • Age between 18 and 45 years
  • Must be unemployed at the time of application
  • Minimum educational qualification: Class V pass
  • Technical qualification mandatory for technical projects
  • Only one beneficiary allowed per family
  • Annual family income should not exceed ₹8 lakh
  • Applicant must not be a bank defaulter
  • Must not have availed benefits under CMSS or PMEGP
  • Valid Trade License is compulsory

Preference is given to BPL candidates and Persons with Disabilities.

Mandatory Entrepreneurship Training

Selected applicants must undergo compulsory entrepreneurship training.

  • Duration: 3 days
  • Training Provider: RSETI or government-approved institutions
  • Timeline: Within 60 days of provisional selection
  • Requirement: Training certificate mandatory for loan release

The training covers business planning, financial management, legal compliance, and marketing skills.

Selection Process

Beneficiary selection under SYSS follows a transparent and structured approach:

  1. Submission of application at the District Industries Centre
  2. Document verification and project report review
  3. Evaluation by the Selection Committee
  4. Assessment of technical and financial feasibility
  5. Recommendation to headquarters
  6. Bank appraisal and loan approval

Projects with exaggerated costs solely to obtain higher subsidies are discouraged.

Application Process

The application process for the Skilled Youth Start-Up Scheme is conducted offline.

Step-by-Step Application Procedure

  1. Collect the prescribed application form (Annexure-I)
  2. Prepare a Detailed Project Report (DPR)
  3. Attach all required documents
  4. Submit the application to the General Manager, DIC
  5. Receive acknowledgment with application reference number
  6. Attend the selection process if shortlisted
  7. Complete mandatory training
  8. Loan sanction and subsidy release

Applicants are encouraged to seek guidance from DIC officials while preparing their project report.

Documents Required

Applicants are required to submit the following documents along with their application:

  • Passport-size photographs
  • Certificate of Identification (COI)
  • Educational qualification certificates
  • Birth certificate
  • Unemployment card
  • Detailed Project Report
  • Income certificate
  • BPL certificate (if applicable)
  • Trade License
  • Technical certificates and NOCs (if required)

Incomplete or incorrect applications may be rejected.

The Sikkim Skilled Youth Start-Up Scheme (SYSS) is a government-supported entrepreneurship program that offers bank-linked loans and back-ended subsidies to educated unemployed youth across Sikkim. More details about entrepreneurship programs can be found on the Ministry of Micro, Small & Medium Enterprises official website and Government of Sikkim Department of Commerce & Industries

Many Government schemes also focus on social security for workers. For example, the Pradhan Mantri Shram Yogi Maan Dhan Yojana provides pension support for unorganized workers, which complements self-employment initiatives like the Sikkim Skilled Youth Start-Up Scheme (SYSS). Learn more about this scheme here