PM Narendra Modi's pet project Mudra' fails to take off in Andhra Pradesh
Visakhapatnam: The Prime Minister’s pet project, Mudra (Micro Units Development and Refining Agency) scheme to fund small entrepreneurs that he keeps talking of at all entrepreneurial meetings, has failed to take off in Andhra Pradesh. The number of loans sanctioned in the last two years has dipped by over 50 per cent compared to its first year in 2014-15.
As per the regional nodal officials overseeing the scheme in Andhra Pradesh, there are many defaulters as many of the beneficiaries are either not paying back the loan or skipping instalments. As a result of which, bad loans have accumulated and the banks are hesitant to offer loans. There are three schemes with different loan limits-Shishu scheme provides loan up to Rs 50,000, Kishore scheme up to Rs 5 lakh and Tarun up to Rs 10 lakh limit.
Under Shishu scheme of the yojana, loans were disbursed to only 2.13 lakhs (2017-18 till date) and 3.66 lakh (2016-17) against 6.12 lakh of the first year of launching of the scheme in 2015-16 in Andhra Pradesh. Similarly, 18,070, 19,050 and 10,581 (till date) number of loans were given under Tarun Scheme which has also not improved much with only four more months left in the ongoing fiscal.
The loan amount sanctioned in 2015-16 under the scheme in AP was Rs 5,790 crore while it was Rs 5,731 crore in 2016-17. So far in the ongoing fiscal year, Rs 4,026 crore has been disbursed. As there is no collateral to be submitted for the loan, the beneficiaries probably had formed an impression that they need not repay the loan. Demonetisation had also hit the scheme as banks were unable to concentrate on such schemes.
