Hyderabad: With the aim of empowering unemployed youth as prospective entrepreneurs, the Telangana government is all set to its path-breaking ‘Rajiv Yuva Vikasam’ scheme on June 2 -- Telangana Formation Day.

Under the scheme, the government will provide financial assistance to 5 lakh unemployed youth from marginalized communities in the 2025-2026 financial year, equipping them with subsidized capital to launch their own businesses and become job creators.

The government has already announced a substantial allocation of Rs 6,250 crore for the scheme, under which members of the Scheduled Castes, Scheduled Tribes, Backward Classes and Minority communities will receive highly subsidised loans.

The beneficiaries will get 100 per cent subsidy on loans up to Rs 50,000 and 90 per cent subsidy on loans up to Rs 1 lakh. The government will offer 80 per cent subsidy up to Rs 2 lakh and 70 per cent subsidy on loans up to Rs 4 lakh loans. In the first phase, the sanctioned loan amounts up to Rs 1 lakh will be given on the launch of the scheme on Monday.

According to officials, over 16.22 lakh applications from the unemployed had been received and the first 5 lakh beneficiaries selected for this year, ensuring 80 per cent represented marginalized groups. Additionally, 25 per cent of spots are reserved for women and 5 per cent for persons with disabilities.

After the distribution of sanction letters, the government-owned employment agencies will organize intensive entrepreneurship development training from June 10 to June 15. The grounding of business units will start from June 16, with a strict deadline for all ventures to be operational by the Gandhi Jayanti (October 2) this year.

According to Deputy CM Bhatti Vikramarka, the government estimates that each new unit will create an average of 4.4 jobs. With 5 lakh businesses launching simultaneously, the government is anticipating the creation of 22 lakh new jobs, both directly and indirectly and giving a significant boost to the state’s economy.

“By turning lakhs of unemployed youth into business owners within months, Telangana aims to ignite a grassroots economic revolution while setting a new benchmark for inclusive development in India”, the Deputy CM said.