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Banks' apathy hurdle for Aatmanirbhar Bharat: KVIC Chairman
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SME Times News Bureau | 17 Oct, 2020
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 Vinai
Saxena has written to Finance Minister Nirmala Sitharaman saying "such
apathy by the banks could derail Centre's efforts to create sustainable
employment in the country".
Saxena's comments came after Sunaina
Mathur, 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 kacchi ghani 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 Arun Rachhoya, 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."
She
said that she also met K.C. Mangal, Assistant General Manager at the
Jhalana Instituional Area on September 7, who said that her loan request
needed to be sent to the Head Office for approval.
She further alleged that the loan request of her firm was never shared with the Head Office.
"As
this was a government-to-government order, there was pressure of
getting blacklisted if the order was not met on time. So I had to
arrange money from friends and relatives to purchase the raw materials
for the order," the Shiva Udyog proprietor said.
IANS tried to contact Mangal, who asked us to get in touch with Deshraj Meena, the General Manager of the PNB in Jaipur.
When asked about the loan request from Shiva Udyog, Meena told IANS, "I will check the details of the said loan request."
Commenting
on the complaint of Jaipur-based Mustard oil manufacturing unit, KVIC
Chairman Vinai Saxena said, "The first-ever supply of mustard oil to
ITBP by KVIC was a prestigious order and timely supply of high-quality
oil to the jawans was the key concern of KVIC."
"Such apathy of
the bank officials could derail the government's efforts to create
sustainable employment in the country," he added.
He said KVIC
has received several complaints pertaining of non-cooperation of bank
officials in granting loans to PMEGP units. "The matter has been taken
up with the Finance Minister," he said.
Saxena said that
responding to the call of Prime Minister Narendra Modi for Aatmanirbhar
Bharat and Vocal for Local, the KVIC has been promoting self-sustainable
employment in the country.
He also said that the central
government's flagship scheme PMEGP is a major tool of employment
generation in the country. "Such non-cooperation by banks in granting
loans to our small units is unfortunate. These small PMEGP units not
only contribute to local production but also create employments," Saxena
added.
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