PMEGP scheme bites dust, 16 approvals, zero disbursal

Rachna Khaira

Tribune News Service

Jalandhar, March 23

Giving a huge blow to the Prime Minister’s Employment Generation Programme (PMEGP) in the district, only 16 people could get approval for the scheme in the current financial year till February. More shockingly, money has not been disbursed to any of them till date.

The scheme grants a loan up to Rs 25 lakh and allows up to 25 per cent subsidy to the general category beneficiaries and up to 35 per cent to the women and SC beneficiaries.

While the district has set a target of setting up around 75 projects with an estimated amount of Rs 1.48 crores to provide employment to around 600 people in the financial year 2017-2018, only 16 people could get approvals under the scheme so far.

While the District Industries Center (DIC) received over 283 applications, only 16 were sanctioned by the banks. Similarly, against 241 applications received under the National Livelihood Mission (NULM), only 35 were approved by banks.

To worsen the things further, over 40 per cent of the beneficiaries under PMEGP were reported to be defaulters.

When asked as to why the loan amount was not disbursed to the sanctioned cases so far, Wattan Singh, Lead Bank Manager Jalandhar informed that none of them had fulfilled the document required for the disbursal of loans.

“Once an applicant completes his documentation, we can release the loan amount,” said Singh. While Singh added that efforts are on to bring genuine people into the fold, sources claimed that the major reason behind the low number of applicants is the ‘transparent payment system’ which allows a direct payment to the supplier.

Since the payments made to the supplier are done directly by the banks through cheques, very few applicants are interested to apply for the loan as they do not get any ‘cut’ from the loan. Also, those who have applied, over 40 per cent were found to have either made fake bills or could not set up units till date.

Progress report on PMEGP

District Industries Centre/Khadi and Village Industries Board (KVIB)/Khadi and Village Industries Commission (KVIC)

• Cases Sponsored: 283 n Sanctioned by Banks: 16
• Disbursal by banks: Zero 

Account opened under various schemes in the district

• Accounts opened under Pradhan Mantri Jan Dhan Yojana in the district (PMJDY): 45719
• Accounts opened under Pradhan Mantri Suraksha Bima Yojana (PMSBY): 290837
• Accounts opened under Atal pension Yojana (APY): 3197

Accounts under Stand Up India Scheme

Under the scheme each branch of a bank facilitates loan up to Rs 10 lakhs to Rs 1 crore to an SC and a woman borrower for setting up gram enterprises) : 288

Sanctioned amount: Rs 5762 lakh

Amount disbursed: Rs 3093 lakh 

Annual credit plan for the year 2018 -2019 : Rs 14032 crore

Priority sector: Rs 12731.44 crore 

Non-Priority sector: Rs 1301.10 crore 

Top 5 performer banks during the year 2017-2018 (as per District Consultative Committee and District Level Review Committee report)

1.ICICI Bank

2.Indian Bank

3.Central Bank

4.Bank Of Baroda

5.Kotak Mahindra bank 

Top five poor performer banks

1.Bank of Baroda

2.Federal Bank

3.J&K Bank

4.Dena Bank

5.Citizen Urban cooperative bank 

Other projects

National Urban Livelihood Mission (NULM)

Cases Sent to banks: 241

Cases rejected by banks: 95

Cases Santioned by banks : 35

Department of Horticulture

Cases Sent to banks: Nil

Cases Sanctioned by banks: Nil

Fish farmers Development Agency 

Cases Sent to banks: Nil

Cases Sanctioned by banks: Nil

Punjab Schedule Caste Corporation (PSCC)

Cases Sponsored: 239

Sanctioned by Banks: 19

Pending cases with banks: 220

Dairy development department

• Cases Sent to banks: 21
• Cases rejected by banks: 7
• Cases Sanctioned by banks : 9
• Cases pending with banks : 5

Progress under Kisan Credit card Scheme

• KCC issued up to march 2017 : 103284 (Amount : 361065 lakhs)
• KCC issued up to April 1 to December 31, 2017 : 1409 (Amount : 13317 lakhs)
• KCC outstanding up to December 17 : 104154 (Amount 374059 lakhs)