The total budget allocated to a block under SVEP is estimated based on the number of enterprises to be promoted in the block.
However, different blocks in a state are not similar in terms of topography, distance from the markets, income levels etc.
SRLMs must, therefore, conduct a baseline study of the block with the help of PIA.
The baseline study helps to identify and finalize the number of entrepreneurs that can be supported in a block through the programme.
Let us take a look at the different budget heads under SVEP and the amount allocated under each budget head. See the table below.
For the budgeting process, these assumptions are made –
The maximum cost for setting up one enterprise as stated in the Master Circular of SVEP is – Rs. 24, 907/-
Maximum number of enterprises that SVEP would support in a block- 2400
Accordingly, the maximum total budget in a block- Rs. 5, 97, 76,800/-
Let us take a look at the different budget heads under SVEP and the amount allocated under each budget head. See the table below.
| S.No. | Budget head | Fixed Costs for Block (in Rs.) | Variable Cost per Enterprise (in Rs.) | Total Cost Per Block (in Rs.) |
| 1 | Skill Building of Entrepreneurs | 7,000 | Rs. 7000 × No. of Enterprises | |
| 2 | Training of Community Institutions | 10,00,000 | 10,00,000 | |
| 3 | Handholding Support by CRP-EP | 3,395 | Rs. 3395 × No. of Enterprises | |
| 4 | Training and Capacity Building of CRP-EP | 7,00,000 | 7,00,000 | |
| 5 | Setting up of BRC-EP (incl. all assets) | 5,00,000 | 5,00,000 | |
| 6 | Working Capital for BRC-EP for operating expenses | 1,80,000 | 1,80,000 | |
| 7 | M&E and PIA Support Cost | |||
| 7A | Baseline (including tablets for CRPs-EP ) | 10,00,000 | 10,00,000 | |
| 7B | Evaluation | 5,00,000 | 5,00,000 | |
| 7C | Mentor and Block Support | 29,76,000 | 29,76,000 | |
| 7D | Block RSETI Cost* (if applicable) | 25,00,000 | 25,00,000 | |
| 8 | CIF and Credit Guarantee Fund | 2,30,17,600 | 2,30,17,600 | |
| 9 | Admin. Cost | 24,55,200 | 24,55,200 |
Do notice that Skill Building of Entrepreneurs and Handholding Support by CRPs-EP are two budget heads that are variable in nature and change based on the total number of enterprises to be promoted in the block. All other budget heads are fixed irrespective of the total number of enterprises.