Work Near Home centres at Kottarakkara and Perinthalmanna, KIIFB interest-free loan for 80% project cost
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The pilot centres of Work near home project of Kerala government will be opened at Kottarakkara and Perinthalmanna municipalities. Kerala Development and Innovation Strategic Council (K-DISC) has proposed that the functioning of pilot centres can be incorporated into the business model of the Work near home centre project.
As per the revised proposal to ensure the financial viability of the project, Operating partner initiated model will be executed for the project. Accordingly the empaneled operating partners will receive 80 per cent of project cost as interest-free loan support from KIIFB with one year moratorium and a repayment period of 10 years for establishing WNH centres anywhere in Kerala and the remaining 20 per cent of the project cost will be borne by the operating partner setting the CapEx ratio as 80:20.
An Expression of Interest will be called to empanel operating partners for this model. The project cost includes DPR preparation cost, rent advance, marketing cost, project execution cost etc. KIIFB will advance the loan to KSITIL (Kerala State Information Technology Infrastructure Ltd ) based on the milestone mutually set by KIIFB and KSITIL. The operating partner can repay the loan to KSITIL as equal quarterly instalments for the next 10 years. The profit generated from the venture after all expenditure including the loan repayment shall be appropriated between the operating partner and KSITIL on a 90:10 ratio.
Decentralized network of work spaces for promoting employment of the educated, unemployed people is one of the interventions mentioned in the strategy paper of the Kerala Knowledge Economy mission (KKEM).