Even after 2 years, young farmers yet to get loan

Mukhya Mantri Kruhsi Udyog Yojana

Even after 2 years, young farmers yet to get loan

Balasore: While two years have passed since the implementation of Mukhyamantri Kurshi Udyog Yojana in Balasore district, not a single agri-entrepreneur has been identified under the scheme in the region yet, a report said.

However, the scheme has failed to garner any success due to alleged negligence of the Agriculture department and delay in sanctioning of loans by banks. The apathy of these has proved to be stumbling blocks in the success of the scheme in the district, the report said.

According to reports, the scheme was launched in the district from December 2020 and the objective behind the scheme was to identify a young farmer from each block who is interested in agriculture-oriented business and provide him/her loan from the banks to further their business.

Under this scheme, the government provides financial assistance in the form of capital investment subsidy on loan to young entrepreneurs for setting up new agro-industries in the state. The Mukhymantri Krishi Udyog Yojana encourages young entrepreneurs to set up a new businesses and increase production in the agriculture sector.

However, till date not a single entrepreneur has been identified. This has triggered sharp resentment among the young farmers interested in taking loans under the scheme to boost their business.

Sources said that many youths in the district returned home during the pandemic after losing their jobs and the scheme held promise for them. The state government had launched the scheme to provide livelihood opportunities to the young farmers.

The Agricultural Promotion & Investment Corporation of Odisha Limited (APICOL) was assigned the task of identifying young farmers in the block-level, especially those whose annual income is more than Rs 2 lakh.  The youths identified under the scheme must have the capacity to invest Rs 2 lakh to Rs 10 lakh, while banks would provide loans over Rs 10 lakh.

The government, while launching the project, announced 50 per cent subsidy for youths belonging to general category and 40 per cent subsidy for women, Scheduled Caste and Scheduled Tribe categories. The government had also announced to reduce the rate of interest on bank loans by three per cent.

Later, the government issued guidelines to include the identified youths in various sectors of agriculture, fisheries and animal resources departments.

Over 22 young farmers had applied in 2020 and another 12 applied this year for loans under the scheme. However, not a single applicant has been able to reap the benefits of the scheme due to alleged negligence of Agriculture department and delay in sanctioning of loans by the banks.

The district Balasore Collector has reviewed the scheme and directed the banks to immediately provide loans to all eligible applicants. However, the bank officials are allegedly delaying the process of sanctioning loans to the applicants on the pretext that they are yet to receive all the documents required to provide loans to the applicants.

On the other hand, the Agriculture department has alleged that banks are showing no interest in providing loans to the applicants despite submission of the necessary papers.

When contacted, Nikunja Basant Rout, chief district Agriculture officer, held the banks responsible for the failure of the scheme. He alleged that banks are not showing interest despite the applicants submitting all necessary papers. Rout further said that the district Collector has directed the banks to provide loans to the identified young farmers under the scheme.

PNN

 

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