465 loan applications for new industrial ventures in the past eight months
Vaibhav Parwat
Chhatrapati Sambhajinagar : In a setback to the Chief Minister Employment Generation Programme (CMEGP), banks in Chhatrapati Sambhajinagar district have rejected a staggering 465 loan applications for new industrial ventures in the past eight months, citing errors in documents. This hurdle poses a threat to the ambitious goal of creating 10 lakh employment opportunities through the establishment of one lakh micro and small enterprises within five years.
The industries centre, responsible for coordinating the CMEGP, sent 993 proposals to banks within the mentioned period to kickstart micro and small-scale industries, amounting to a proposed investment of Rs 394 crore. However, only 134 cases, totaling Rs 13.78 crore, received approval from the banks, leaving many aspiring entrepreneurs grappling with the rejection of their proposals. Banks, reluctant to take a bold stance in supporting new enterprises, cited various reasons for their rejections. Issues such as non-fulfillment of required documents, unavailability of the concerned person, projects deemed non-viable, loan demands surpassing project costs, and lack of collateral and income tax documents were the commonly stated grounds for denial.
Potential for widespread development
There is a need for collaboration between the government and banks to overcome this impasse. With over 300 branches of 21 banks operating in the district, there is a potential for widespread economic development and job creation if banks were more forthcoming in approving loans for new ventures, said Rahul Jade, manager of the DIC.
Status of employment generation programme
In all, 993 people in the district have submitted a proposal of Rs 394 crore. Banks have approved proposals for a total of 134 projects worth Rs 13.78 crore received through industries centre. These new entrepreneurs will get a grant of Rs 3.92 crore. Banks have rejected 465 proposals for construction of projects worth Rs 50.33 crore.