KVIC concerned as 'Aatmanirbhar Bharat' scheme faces hurdles over apathy of banks

NEW DELHI: The Central government's ambitious 'Aatmanirbhar Bharat' (self-reliant) programme faces a major hurdle in the form of non-cooperation from banks in granting loans for small manufacturing units under the flagship scheme Prime Minister Employment Generation Program (PMEGP).

The Khadi and Village Industries Commission, the implementing agency, has received a flurry of such complaints from prospective entrepreneurs alleging inaction or non-cooperation from banks on their loan applications.

Following the complaints, KVIC Chairman VinaiSaxena has written to Finance Minister NirmalaSitharaman saying "such apathy by the banks could derail Centre's efforts to create sustainable employment in the country".

Saxena's comments came after SunainaMathur, Proprietor of Shiva Udyog in Jaipur, Rajasthan, wrote to him on October 7 highlighting the apathy of bank officials in providing short term working capital loan of Rs 50 lakh to her unit despite of a confirmed order from the government with a guarantee of time-bound payment.

The Jaipur-based Shiva Udyog has got the orders from the KVIC to provide 40,000 kgs of mustard oil to Indo-Tibetan Border Police (ITBP) on August 27 this year.

On August 27, the KVIC has announced that it has received the first order from ITBP for supplying 1,200 quintals of kacchighani mustard oil worth Rs 1.73 crore.

The ITBP is the nodal agency appointed by Ministry of Home Affairs for the procurement of provisions on behalf of all paramilitary forces. The KVIC and ITBP have signed a memorandum of understanding for one year which will be renewed further.

Speaking to IANS about the apathy shown by Punjab National Bank (PNB), Jaipur, where Mathur has her loan account, she said, "After receiving an order worth Rs 57.6 lakh from the KVIC to provide 40,000 kgs of mustard oil to ITBP, we approached our PNB branch, which was earlier United Bank of India where we have our bank account on August 31 for a short-term working loan for the purchase of raw material."

She said that on the instructions from branch manager ArunRachhoya, she even got a letter issued from KVIC on September 2 that the payment for the government-to-government order would be transmitted directly into the PNB loan account." (IANS)

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