The Hindu : Delayed bank loans hit CMEY scheme

Online edition of India's National Newspaper
Tuesday, Dec 10, 2002

Southern States

Southern States - Andhra Pradesh

Delayed bank loans hit CMEY scheme

By Our Correspondent

KAKINADA DEC. 9. Implementation of the CMEY (Chief Minister's Empowerment of Youth) scheme has left much to be desired, according to sources. The main objective of the scheme is to extend financial and moral support to young men and women to establish own units of their choice suited to their taste and skill.

There is no dearth for funds and aid released for the scheme continues to remain unutilised due to various constraints. It is only after close scrutiny of the women's groups and youth clubs beneficiaries are selected for financial support. Till then funds released under the CMEY are unutilised, sources said.

Beneficiaries are subjected to strict scrutiny and only then recommended to banks for financial support. But the response in sanctioning loans to the trained candidates is not encouraging. Sources pointed out that this is the major constraint hampering successful implementation of the scheme.

During the current fiscal year, it is proposed to extend a total financial support of Rs. 23.18 croress to 1,159 groups, but not even half the target was provided loans in the first eight months of this year. Out of the total of 1,159 groups, the target this year, 550 were identified as eligible groups and were trained before recommending them to banks for loans in the first phase. Of these groups, loans were sanctioned to only 128 groups. Of them only a small number were grounded while a majority with sanctioned loans, were yet to be grounded.

For implementation of the CMEY scheme, a revolving fund of Rs. 695 crores is ready for release and margin money of Rs. 4.64 crores is to be received from various corporations. These two amounts would meet 50 per cent of the cost of the scheme leaving the rest of Rs. 11.59 crores to be sanctioned by banks. Sources said at this point the progress of the CMEY scheme is bogged down due to reluctance of banks to sanction loans to the trained 550 CMEY groups. The scheme was prepared envisaging a financial support at the rate of Rs. 2 lakhs for each group.

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