Srinagar, May 12, KDC: Hundreds of unemployed youth and aspiring entrepreneurs who have availed the loan under the Prime Minister’s Employment Generation Program (PMEGP) in Jammu and Kashmir are facing a serious financial crisis as the promised subsidy under this scheme remains unexpected even after the completion of their affairs till December 2024.
According to Srinagar -based news assembly Kashmir.com, despite assurance that money will be released in the new financial year, the beneficiaries are now being told that their applications will pass through additional verification through post offices, which delayed the process.
PMEGP is a major credit-linked subsidy scheme implemented by Khadi and Village Industries Commission (KVIC) to generate employment by setting up micro-entrust in rural and urban areas. Under the scheme, beneficiaries can avail loans up to ₹ 25 lakh for manufacturing units and up to ₹ 10 lakh for service units, which contains a subsidy of 15% to 35% based on the category of applicant (general, SC/ST/OBC, women, etc.).
Many beneficiaries applying in 2021-22 were told that their cases were approved and they would be processed by December 2024. However, instead of receiving subsidy, they were asked to wait for the next financial year (2024–25). Now, the authorities have introduced an additional layer of verification – physical confirmation through postal offices – before destroying the subsidy amount.
A beneficiary of Pulwama, Ahmed said, “I took a loan of 10 lakhs to start a small apparel unit. The bank is charging interest, but my subsidy has not come.
Another applicant, Nisar Ahmed of Anantnag shared his exam: “I quit my job to start a food processing unit under PMEGP. Officials said” wait by March, wait by December. ” Now they say that the post office will verify my address.
Since the subsidy amount reduces the loan liability, the beneficiaries are forced to pay high EMIs on the full loan amount until the credit for subsidy is given. Many, already struggling with low revenue, are afraid of slipping into the debt trap.
“I took ₹ 15 lakh loan for a handicraft unit. A subsidy of 25% () 3.75 lakh) was to reduce my burden, but without it, I am paying interest on the entire amount.
The beneficiaries argue that such verification should have been done earlier. A group of applicants from Bandipora said, “If they were not sure about our credibility, why the loan was approved? Now, after a year, they want post office verification. This is harassment.”
With no clear time limit, hundreds of pmegp beneficiaries are left in uncertainty.
Meanwhile, financial experts have warned that the delay in subsidy disbursement may lead to an increase in NPAs (non-performing assets) for banks if borrowers default.
An economic analyst said, “The government should accelerate the process or provide interim interest relief to these applicants. Otherwise, a scheme to promote entrepreneurship will push people deeply into loans.”
As the wait continues, unemployed youth who have pinned their hopes on PMEGP are stopped asking whether the delay of the plan will cost them their dreams and their financial stability. (KDC)
