Srinagar: Thousands of unemployed entrepreneurs who took loans under the Prime Minister’s Employment Generation Programme (PMEGP) are facing severe financial distress as they have been waiting for their promised subsidy for over five years.
The delay has forced many to continue paying interest to banks, exacerbating their economic hardships and pushing their small-scale business units to the brink of crisis.
Despite the scheme’s intent to alleviate unemployment and boost small-scale industries, the prolonged wait for the subsidy has left many entrepreneurs in a precarious situation. Banks are refusing to settle subsidy claims, leaving the beneficiaries to bear the financial burden.
In North Kashmir’s Baramulla, Bandipora, and Kupwara districts alone, more than a thousand entrepreneurs are trapped in this financial limbo. These individuals, who had taken loans via the Jammu and Kashmir Khadi and Village Industries Board (KVIB), and District Industrial Centers (DIC) to start small businesses and earn their livelihoods, feel betrayed by the system. The subsidy, which was supposed to be a boon, has become a distant dream as they continue to pay interest on their loans without any relief in sight.
Talking to Kashmir Images, several entrepreneurs expressed their frustration and despair. They allege that the promise of a subsidy has turned into a nightmare, as the KVIB and DIC have failed to expedite the geo-tagging process, a necessary step for subsidy disbursement.
One entrepreneur, Farooq Ahmad, said, “We feel cheated. We were promised a subsidy, but the KVIB has told us that the geo-tagging team has yet to come. This delay is entirely due to the concerned departments not taking the matter seriously. The district-level teams are capable of handling the geo-tagging, but nothing is being done. Meanwhile, we are left to pay interest, and our businesses are suffering.”
The entrepreneurs’ plight underscores a significant administrative bottleneck. Geo-tagging, which involves mapping the physical locations of the units to verify their existence and operation, is a critical step in the subsidy process. However, the delays in this process have halted the subsidy disbursements.
A communication from the Khadi and Village Industries Commission (KVIC), a copy of which lies with Kashmir Images, outlines the steps for physical verification and geo-tagging of PMEGP units. The letter, PMEGP/PV/2021-22/ dated 16-07-2020, addressed to all State Directors of KVIC, emphasizes the importance of 100% physical verification of units established from 2016-17 to 2018-19. The verification process, conducted through an outsourced agency, aims to facilitate the adjustment of margin money released by the respective bank branches.
As per the circular, M/s. Genesys International Corporation Limited was appointed to conduct physical verification across India using GIS mobile-based applications.
However, the existing physical verification process carried out by state directors has been discontinued and centralized, leading to delays. The delay in geo-tagging, as mandated by the KVIC, has resulted in banks withholding the subsidy, causing immense financial strain on the entrepreneurs.
As the wait continues, the financial strain on these small business owners grows. Many are finding it increasingly difficult to sustain their operations, with some contemplating shutting down their units altogether. The lack of subsidy not only affects their business sustainability but also impacts their ability to repay loans, thereby increasing their financial liabilities.
The affected entrepreneurs are calling on the authorities to expedite the geo-tagging process and ensure timely disbursement of subsidies. They argue that immediate intervention is needed to prevent further economic distress and to fulfil the promises made under the PMEGP scheme.
The situation in the three districts of north Kashmir reflects a larger issue faced by PMEGP beneficiaries across Jammu and Kashmir. Unless swift action is taken, the scheme intended to empower small-scale entrepreneurs might end up crippling their dreams instead.
For now, these entrepreneurs continue their struggle, hoping for a resolution that will bring them the relief they were promised and enable them to thrive in their entrepreneurial endeavors.
When contacted, District Manager KVIB Altaf Ahmad Malik admitted the crisis faced by the entrepreneurs and said that the matter has been taken up with higher authorities for immediate redressal. “I hope the grave issue of subsidy will be resolved very soon as teams for geo-tagging have to be conducted through an outsourced agency which gets a contract from the Government of India,” Malik added.
