MP: SC Finance Corporation Not Giving Loans — Sending Community Youth into Tizzy

Bhopal: The Madhya Pradesh government’s schemes for the Scheduled Castes (SCs) are apparently limited to papers only. The ongoing financial year (2023-24) is nearing its end, and such welfare schemes have so far achieved only up to 50 percent of its target.

The Madhya Pradesh State Cooperative Scheduled Caste Finance and Development Corporation had to provide business loans to youth belonging to the SC community, but only 50 percent of its total allocation has till now been spent in this fiscal — which will end on March 31.

The corporation is offering four schemes wherein there is a provision of business loan amounting from Rs 1 lakh to Rs 2 crore. But even after applying, eligible candidates did not get the sum. Their application forms were allegedly rejected on flimsy grounds.

In addition, in some schemes, the department did not meet even 10 percent of its application target. If the targeted number of applications are not received by March 31, the sanctioned budget amount will lapse.

Under the Sant Ravidas Self-Employment Scheme, a loan amount ranging between Rs 1 lakh to Rs 50 lakh has to be given to candidates for industrial projects such as agro processing, food processing, cold storage, milk processing, etc.

For service units and retail business projects like beauty parlor, vehicle repairing, footwear repairing, grocery business and textile business, a loan of Rs 1 lakh to Rs 25 lakh can be taken. 

It is mandatory for applicants to have passed grade eight and minimum age of 18 to 45 years. Also, the annual income of the applicant’s family should not exceed Rs 12 lakh. The corporation provides interest subsidy at the rate of 5 percent per annum for the financial assistance.

The scheme was slated to reach 2,000 beneficiaries in the current financial year. Against its target, the corporation received 6,027 applications, of which 1,354 were approved. But of the total approved applications, 1,119 people have so far received the fund.

The second such scheme is the Ambedkar Economic Welfare Scheme wherein loans are also given under for expansion of businesses. 

To avail its benefits, it is mandatory for the applicant to be between 18 to 55 years of age. In addition, the applicant should not be an income tax payer. 

An iInterest subsidy at the rate of 7 percent per annum is given as financial assistance on the loan sanctioned by the corporation under this scheme.

The corporation had set a target of sanctioning loans to 5,000 people. It has so far received only 3,697 applications. Of the total 1,342 approvals, only 1,155 people have been disbursed the fund.

Under the Chief Minister Scheduled Caste Special Project Funding Scheme, financial assistance is provided in the special project proposals received through various departments. 

An amount of Rs 2 crores is given as a grant to the entire cost of the scheme. The target number in this scheme was kept at 10, against which the department received 29 applications. While 21 applications were approved, none of the beneficiaries have got a single penny.

Under the Savitribai Phule Self-Help Group Scheme, women self-help groups have been included. It has a provision of a loan amount up to Rs 2 crore.

The Mooknayak spoke to Sawan Sonkar, president of the Scheduled Caste Finance Development Corporation, seeking to know the reason behind the schemes falling short of reaching its targeted number of beneficiaries.

“I am not aware of the progress of the schemes, I will be able to tell something only after I have statistics,” he said.

Our investigation revealed the target has not so far been achieved due to delay in budget allocation and lack of proper publicity of the schemes. Even in the financial year 2022-23, the target was not achieved because of the same reasons. In addition, the schemes could not be disseminated even to rural areas.

According to sources, in the current financial year, even pamphlets could not be printed to make people aware of the schemes. The Public Relations Department of the state government did not choose to use hoarding or other means of communication for advertisements.

R Bichhole, national president of the National Scheduled Caste Tribe Youth Association (NAZI), accused the government of being negligent in implementing the schemes.

“This is not the first time this has happened. The government has always been negligent in ensuring that SCs are benefited from such welfare schemes. They can neither provide jobs to the deprived class nor make arrangements for their employment. Their claims and promises are limited to speeches only,” he told The Mooknayak.

The Madhya Pradesh State Cooperative Scheduled Caste Finance and Development Corporation Limited operates under the Scheduled Caste Welfare Department. 

The corporation launches schemes to economically strengthen the people belonging to the SC community with an aim to provide them business opportunities. 

It gives loans to SC category people for various projects. The loan is obtained from the nearest bank of the applicants. The corporation gives rebates on interest of total lendings.

Story Translated by Tarique Anwar

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