Schemes for Dalit-run businesses no raging success

NEW DELHI: Fifty seven – this is the number of young Dalit entrepreneurs and start-ups the Narendra Modi government has helped over the last two years. At a time when the BJP is trying to tap into Dalit votebank, the Centre's schemes to help Dalit-run businesses and start-ups are drawing a lukewarm response.

Sample this: only four entrepreneurs have been assisted over the last two years under Credit Enhancement Guarantee Scheme for Scheduled Castes. The Venture Capital Fund has done better with the government helping 53 entrepreneurs till date. The two schemes were announced in the Union Budget in July 2014 as soon as the Modi government took over. Under Credit Enhancement Guarantee Scheme for Scheduled Castes, Rs 200 crore were released to IFCI in 2014-15. The next fiscal saw a release of a mere Rs 1 lakh. The budget allocation in the current fiscal has been scaled down to Rs 10 crore. The statistics provided to ET by the social justice and empowerment ministry reveals that four entrepreneurs have been assisted with the guarantee cover of Rs 12.99 crore. The government has modified its guidelines in May to help improve utilization.

Under Venture Capital Fund, Rs 201.48 crore have been sanctioned to 53 beneficiaries over the last two years. Speaking to ET, social justice and empowerment minister Thaawar Chand Gehlot said, "These schemes are new schemes. The first few months after the launch were used for publicity and awareness. We are trying to see why there is poor response in some of them. We are examining the guidelines and we are proposing revisions so that more beneficiaries can be brought under their ambit."

Schemes spearheaded by National Scheduled Castes Finance and Development Corporation (NSFDC) under the ministry also reveal a grim picture with most states not tapping into the resources. Under credit based schemes, states with high SC population like Uttar Pradesh have not utilized even half the funds ear-marked. In 2015-16, 17 of the 25 states could barely use half of the funds allocated. Under skill development and training programmes, though the target of number of training programmes has been met but the outcome has not been up to the mark. The outcome-based approach mandates at least 70% overall placement of trainees. The average rate as per NSFDC statistics is 53%.

Gehlot said, "The ministry is dependent on states' channelizing agencies for implementation of these schemes. Some states have their own schemes and they overshadow ours as they have better terms and conditions. In other states the channelizing agencies take the money but do not disburse it to the beneficiaries. We are holding review meetings to improve utilization."