SRINAGAR: Conceding that various government sponsored schemes through banks have shown a poor performance, the government has constituted a committee to investigate the phenomenon and find remedies.
According to the terms of reference, the government order reads that the committee will identify the reasons for the poor performance under “various government sponsored schemes vis-à-vis through banks”.
The committee will also recommend measures to address the identified problems preventing the success of schemes besides making other recommendations.
The committee will comprise of 11 members who will include representatives from the HDFC Bank, Jammu and Kashmir Bank, NABARD, Punjab National Bank, State Bank of India, directors of rural development department of Kashmir and Jammu provinces, director employment department, director agriculture department, administrative secretary industries and commerce department, labour commissioner, and administrative secretary finance department.
The committee has been instructed to complete the report of findings within three weeks which shall be serviced by the finance department.
According to the senior officials, the various government schemes through banks were failing due to reduction in the subsidy and also due to complex bureaucratic procedures.
“First of the seed money is very low in many of the schemes,” a senior official, working in the agriculture department, said. “Hence it does not attract people”.
Officials said the bureaucratic hurdles associated with the schemes and later the tough procedures of the banks makes one uninterested the whole process of availing the schemes.
“Just take example of Kisan credit schemes. The money is a pittance and the formalities are so much that people do not avail it,” the official said. “If one avails the scheme, the investigation part to grant him loan is another part of the story. It discourages people from availing schemes”.
A senior official, working in Jammu and Kashmir Bank said that various government departments have schemes for the people where they give loans on low interests to the people.
“The main reason for availing government schemes is the subsidy provided by the departments,” official said. “The truth is that the government has reduced the subsidy. And, in some cases, they have schemes, but not the subsidy money. So it is actual government which is responsible for discouraging people from availing schemes”.
Giving an example, official said the government under self employment schemes would provide loans to unemployed youth, but since past few years, very few such cases come to us.
“They do not have money for the departments,” official said. “EDI has some people who avail schemes through banks. The rest of the departments have very few and unattractive schemes. Both the bank and the administrative requirements are such that it will take more money to fulfill those procedures than availing that little amount of subsidy which that particular scheme guarantees”.
The official said that various district rural development schemes give small loans for various purposes but the commission money demanded by the government officials, discourages people to avail the schemes.
“The rural development department says is giving Rs 50,000, loan to a person. But the official will take some amount of commissions even if the subsidy amount is not more than Rs 20,000. Why will one avail such a scheme?” the official questioned.