Govt forms committee to identify reasons why so many cases are rejected
Srinagar: If you are an entrepreneur banking on the government for funding, your expectations are badly misplaced irrespective of how good your idea is. This is because various institutions, from banks to government departments, block funding to businesses for unknown reasons.
Ahmad Muhammad, a young entrepreneur, is one of many who have not been able to start their enterprise because of this impediment. Muhammad wanted to set up his unit for manufacturing of tailor-made dresses that would be a fusion of designs from many cultures. He identified a location, charted down all the planning, operational and managerial strategies. Now he just needed funding, a part of which he thought could be funded under the Prime Minister’s Employment Generation Programme (PMEGP).
“It has been a long time now, but the case remains pending because funds have not been released,” he told Kashmir Reader.
This sitting on funds is a problem that has been identified by the government itself, prompting it to form a committee which will study the reasons behind the large number of rejection of cases under the Prime Minister’s Employment Generation Programme (PMEGP). According to the government order, the committee has been tasked to suggest corrective measures to be taken to bring down the number of cases of rejection. A random sample of 300 rejected cases may be taken up for study and the report has to be submitted by the committee within 30 days.
Under the PMEGP scheme, a manufacturing unit can get up to Rs 25 lakh in funding, while a project in the services sector can get up to RS 10 lakh. One only needs to have a bare minimum qualification of Class 8, and approval of various departments. Ahmad, who is a PG in financial management, fulfils all the criteria, but funding for his project remains stalled.
Muteen is another who faces the same hurdles. According to him, his case is fit, but his argument with officials at the bank, which is supposed to provide the loan, over his refusal to pay a bribe is what has led to his case being rejected.
Muteen told Kashmir Reader that he has also informed the Khadi and Village Industries Commission (KVIC), which is the nodal agency of the scheme, but to no avail.
“Its state level agency, KVIC Directorate, routes government subsidy through designated banks for eventual disbursal to the beneficiaries directly into their bank accounts. The agency told me that they cannot intervene. I don’t know what to do now,” he added.