Kalpataru Scheme 2025: Assam, one of the most progressive northeastern states of India, has taken a bold step in tackling youth unemployment through the Kalpataru Scheme. First introduced in 2003–04, this self-employment initiative was designed to bring educated but jobless youth above the poverty line by offering financial support to start small businesses. Over time, the scheme has evolved to include broader sectors and larger funding slabs making it a lifeline for thousands across the state.
In this blog post, we’ll dive deep into how the Kalpataru Scheme works, its three components, eligibility criteria, application process, and how you or someone you know can benefit from it.
What is the Kalpataru Scheme?
The Kalpataru Scheme is an employment generation initiative by the Planning & Development Department and the Industries and Commerce Department of the Assam Government. It is aimed at providing financial support to unemployed youths across the state (excluding Sixth Schedule Areas), helping them create income-generating enterprises in agriculture, service, and industry sectors.
This scheme is divided into three components based on the scale of assistance required and the income level of the beneficiaries. It ensures targeted aid to individuals from financially weaker sections who haven’t yet received any form of government loan or benefit.
Objectives of the Kalpataru Scheme
- To reduce unemployment among educated youth in Assam
- To provide sustainable self-employment options
- To uplift BPL (Below Poverty Line) families through micro-enterprise development
- To promote entrepreneurship in rural and semi-urban areas
- To create localized employment through industry, agriculture, and services
Key Features of the Kalpataru Scheme
| Scheme Type | Self-employment / financial assistance |
| Launched By | Government of Assam (2003–04) |
| Coverage | Entire Assam (excluding Sixth Schedule Areas) |
| Target Beneficiaries | Educated, unemployed youth between 18 to 35 years |
| Assistance Provided | Direct bank transfer / cheque / bank loan |
| Sectors Covered | Agriculture, Industry, and Service |
| Required Registration | Must be registered in Assam Employment Exchange |
Components of the Kalpataru Scheme
Kalpataru Component I – Micro-Enterprise Assistance (Up to ₹7,000)
This component targets the most financially challenged families.
- Target Group: Unemployed youth from families with annual income below ₹30,000
- Financial Support: Up to ₹7,000
- Beneficiary Contribution: Not required
- Sectors Covered: Piggery, poultry, tailoring, pan shops, saloons, silk rearing, etc.
- Disbursing Authority: Deputy Commissioner’s Office
Kalpataru Component II – Support for Small Business Startups (₹7,000 – ₹40,000)
Designed for youths with some investment capacity and higher income ceiling.
- Target Group: Families with annual income below ₹60,000
- Financial Support: ₹7,000 to ₹40,000
- Beneficiary Contribution: 20% (reduced if bank loan is larger)
- Implementing Bodies: Assam Khadi Village Industries Board, DRDA, or relevant development departments
Kalpataru Component III – Medium Enterprises & Industrial Units (₹40,000 – ₹75,000)
For individuals ready to launch slightly larger enterprises with department-level backing.
- Implemented By: District Industries and Commerce Department
- Target Group: Youth with some financial backing, families earning less than ₹60,000 annually
- Financial Support: ₹40,000 to ₹75,000
- Beneficiary Contribution: 20% or less (adjusted with loan)
Also Read: Assam Orunodoi 3.0 Scheme 2025: Apply Online, Eligibility, Benefits & Updates
Who is Eligible for Kalpataru Scheme?
To apply for the Kalpataru Scheme, you must fulfill these criteria:
- Must be an unemployed youth aged between 18–35 years
- Resident of Assam and registered with the Assam Employment Exchange
- Must belong to a family under the specified income thresholds
- Should not have availed any other government loan or scheme previously
- Should be willing to engage in self-employment activities
How to Apply for Kalpataru Scheme in 2025?
The application process is component-wise and happens at the district level.
- Application Notification: Published in local newspapers or official notice boards
- Submit Application: Fill out the form and submit to the respective District Authority
- Screening:
- For Component I & II: Screening is done by the Deputy Commissioner
- For Component III: Selection is carried out by the General Manager, DIC
- Selection Committee Includes:
Deputy Commissioner (Chair), District Officials, MLA, Bank Officers, DRDA, DIC, Planning Officers - Financial Disbursement: After approval, funds are transferred via cheque or bank loan
Monitoring and Oversight
The scheme is closely monitored by the District Level Committee, which ensures fair selection, fund disbursement, and technical guidance. Development departments also assist in implementation and post-loan support to ensure business sustainability.
Why Kalpataru Scheme Matters in Assam
Unemployment continues to be one of the most pressing challenges in Assam. The Kalpataru Scheme acts as a catalyst in solving this problem by helping youth become self-reliant entrepreneurs. Whether it’s a tailoring unit, a piggery farm, or a small repair shop, this scheme has helped countless Assamese youth build something of their own.
It is especially beneficial for those in rural areas, where job opportunities are scarce and formal employment is limited. By promoting micro-entrepreneurship, the scheme not only creates jobs but also uplifts the local economy.
Final Words
If you or someone you know is an unemployed youth in Assam looking to start a business but lacks funds, the Kalpataru Scheme could be the ideal stepping stone. With minimal contribution and government support, it offers a genuine opportunity to build a better life through self-employment.
