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Last Updated Monday April 23 2018 07:23 AM IST

Self-employment generation scheme fails to gain traction in Kerala

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Self-employment io Kerala PMEGP is a credit-linked subsidy program to fund new self-employment ventures or micro enterprises as a means to generate employment.

Thiruvananthapuram: The prime minister's employment generation program (PMEGP), launched by the central government with an aim of creating 37 lakh jobs, has failed to make much headway in Kerala.

Banks in Kerala have so far given away just 411 loans under the program, or less than a sixth of the target of 2,626, shows a report of the state-level bankers' committee. Only about Rs 10 crore, or less than a fifth of the Rs 52 crore targeted, were disbursed.

The committee that met recently has reportedly directed the banks to decide on the 6,000 pending loan applications and speed up the disbursal process.

PMEGP is a credit-linked subsidy program to fund new self-employment ventures or micro enterprises as a means to generate employment.

The bankers’ committee has decided to recommend to the government to amend rules to ensure funds are not diverted by the borrowers and the work on the proposed projects begin as stated.

Also, there should be a provision for the bank and the agencies that implement the scheme to approach the police in such cases, it said.

Another demand raised by the committee was to include details of loans in revenue records when property records are given as surety.

There have been cases where pledged properties were further transacted without their knowledge and banks are seeking to curb such scams.

But the revenue department hasn’t taken any steps in this direction despite the committee raising it several times, it noted at the meeting.

The government can decide a fee for including loan details in revenue records, the committee said.

It suggested a fee of Rs 500 when the loan amount is below Rs 10 lakh, Rs 1,000 when it is between Rs 10 lakh and Rs 25 lakh, and Rs 2,500 when the amount is more than that.

In the past three months, deposits in banks rose by Rs 6,931 crore to Rs 4.25 lakh crore.

NRI deposits increased Rs 3,674 crore during this period, taking the total under this category to about Rs 1.58 lakh crore.

Banks disbursed Rs 9,914 crore in loans in three months, taking their total outstanding credit to Rs 2.71 lakh crore.

Read more at Onamanorama business  

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