[ Apasi Linggi & Kara Gambo ]
ITANAGAR, 7 Jan: Arunachal Hope Foundation (AHF) chairman Rigam Singhi had raised serious concern over alleged corruption in the implementation of the Prime Minister Employment Generation Programme (PMEGP).
In a press conference on Tuesday, Singhi claimed that the PMEGP scheme has been grossly misused by influential individuals, including politicians and relatives of government officers, by flouting the guidelines and depriving the intended beneficiaries.
The scheme is aimed at providing financial support to unemployed youths. It provides a subsidy of 35% for rural and 25% for urban beneficiaries to foster entrepreneurship among unemployed youths. It was launched in 2008, drawing inspiration from Mahatma Gandhi’s vision of self-reliance, and offers loans ranging from Rs 1 lakh to Rs 50 lakhs under the Khadi and Village Industries Commission.
Citing an example without revealing names, Singhi said that subsidy amounts, which are meant to be credited only after three years of a loan’s approval, have been released within hours of the loan sanction. He further claimed that on one occasion, a subsidy was credited to a beneficiary’s account on the same day it was received by the bank, breaching KVIC regulations.
He alleged that instead of unemployed youths benefiting from the scheme, it is being exploited by politicians, established business people, and relatives of influential officers. According to Singhi, these individuals manipulate the system, withdraw the subsidy amounts immediately, and use the funds to clear term loans in a single transaction, rather than investing in business growth.
“This misuse deprives genuine unemployed youths of opportunities. If the scheme was implemented properly, hundreds of young entrepreneurs could have emerged, and some might even have become millionaires,” Singhi said, expressing disappointment at the current state of affairs.
He further highlighted discrepancies in the practices of certain banks, accusing the State Cooperative Bank of sanctioning loans at significantly higher rates than the State Bank of India. This, he claimed, adds another layer of mismanagement to the scheme’s implementation.
Singhi appealed to Labour and Employment Minister Nyato Dukam to ensure stricter monitoring and enforce transparency in the scheme. He also appealed to the state government to take immediate action against those misusing the programme, and to expand the number of seats available under the PMEGP to accommodate more unemployed youths.
