Banks impede PMEGP in achieving target
Source: The Sangai Express
Imphal, October 31 2017:
The way banks have been responding has been impeding the Prime Minister's Employment Generation Programme (PMEGP) from achieving its target .
PMEGP was conceptualised with the primary objective of generating employment avenues through micro enterprises .
PMEGP was launched in Manipur in 2009-10.Under this scheme, one can take loans of up to Rs 25 lakh if the investment should be made in manufacturing sector and Rs 10 lakh if the capital should be invested in service sector .
KVIC, KVIB and DICs are the implementing agencies of PMEGP.
The task of selecting PMEGP beneficiaries should be done by district level task forces headed by Deputy Commissioners as chairmen .
However, applications filed by many people for PMEGP loans have been arbitrarily rejected by banks in contravention of the scheme's guidelines, informed a source .
There are also cases where costs of projects recommended by district task forces are cut down by banks at the time of sanctioning the project costs thereby posing major hurdles to successful implementation of the scheme .
The matter was raised during a meeting held recently with the Textiles, Commerce and Industry Minister in the chair .
A meeting of the scheme's State level monitoring body was also held on October 29 .
Even as a target of 717 projects has been set up, only 243 projects have been sanctioned so far.
Margin money subsidy for the 717 projects is Rs 14.34 crore.
With only 243 projects sanctioned so far, margin money of Rs 5.40 crore or 38 per cent of the total targeted margin has been distributed to beneficiaries till date .
Taking strong exception to the very low number of sanctioned projects, the Ministry enquired about it to the State Government, conveyed the source .
Out of all the applications received by the Government for the scheme, the State level bankers committee gave approval to only 2150 projects .
In the meantime, the total number of targeted projects has been raised from 717 to 1793 and further to 3228 and the corresponding margin money is around Rs 35 crore .
With a view to ensure transparency and successful implementation of the scheme, the Government has introduced e-tracking system .
The sub-committee meeting of the State level bankers' committee chaired by the Textiles, Commerce and Industry Minister deliberated on how to implement the scheme successfully, and adopted a number of resolutions .
To help applicants prepare projects, expert committee/firm/agency/official would be stationed in each and every district.
Holding a series of awareness programmes about the scheme for entrepreneurs and establishment of separate cells at DICs for screening applicants were some other resolutions adopted at the meeting .
Moreover, DCs have been instructed to hold regular meetings with bank officials so that banks cannot neglect applications filed for PMEGP .
The Government has notified that banks should not reject or cut down costs of projects recommended by district task force committees without giving sound reasons .
The scheme launched in the State in 2009-10 set a target of taking 9145 projects by 2015-16 but only 3514 projects have been taken up so far .
Even though the scheme aimed at generating 39078 jobs, only 19107 jobs have been created, added the source.
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