Chamoli, November 22, 2024: The promise of financial support under the Prime Minister’s Employment Generation Programme (PMEGP) has turned into a prolonged struggle for hundreds of aspiring entrepreneurs in Uttarakhand’s Chamoli district. Launched to promote self-employment, the scheme has left many participants burdened with debt due to delayed subsidy disbursement.
Since 2021, 581 youths in Chamoli were approved for loans to start small businesses, shops, and other ventures under the program. As per the guidelines, beneficiaries were entitled to a 35% subsidy on project costs in rural areas and 25% in urban regions. However, four years later, a significant portion of the subsidies has yet to reach the banks, leaving beneficiaries to bear the mounting burden of interest payments.
Entrepreneurs Caught in Financial Limbo
Out of the approved 1,163 units under the program, subsidies for only 581 beneficiaries have been processed. The remaining 582 applicants continue to face uncertainty, with no timeline for the disbursal of their dues. For these young entrepreneurs, the absence of subsidy translates into heavier loan repayment obligations and financial stress.
Local entrepreneur and PMEGP beneficiary Amit Rawat expressed frustration, saying, “We started our businesses hoping for timely financial support, but the delay in subsidies has left us struggling to even cover the interest on our loans.”
Administrative Roadblocks
The delay stems from a procedural hitch involving third-party verification of the units. The process, meant to ensure compliance with subsidy eligibility criteria, has slowed down approvals, despite the district administration and the industries department claiming regular reviews and communication with higher authorities.
Chamoli District Magistrate Sandeep Tiwari assured that the administration is actively pursuing a resolution. “We are in regular contact with the industries department and have issued directions to expedite the subsidy approval process. The concerns of entrepreneurs are being taken seriously,” he stated.
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Badrinath MLA Lakhpat Butola criticized the delay, calling it a betrayal of the unemployed youth. “The subsidy backlog is a significant financial strain on beneficiaries. These delays are not only harming the economic well-being of individuals but also hindering the region’s overall development,” he remarked.
The delay in subsidy disbursal has not only burdened the youth with loan repayments but also diminished their trust in government initiatives. With the interest on loans continuing to accumulate, many fear their fledgling businesses may collapse before the promised support arrives.
While the administration assures timely action, the delay underscores the need for better implementation and monitoring of such schemes. For the youth of Uttarakhand, the hope is that the government resolves these issues swiftly, allowing them to realize their dreams of self-reliance and entrepreneurship.
