HYDERABAD: The Telangana government has made bank linkage mandatory for units sanctioned under the Rajiv Yuva Vikasam scheme. Even if a beneficiary is willing to bear the remaining cost after receiving the subsidy, units cannot be sanctioned without a bank linkage. The decision aims to enhance transparency in the scheme’s implementation and prevent misappropriation of funds.
This clarification was issued during a recent review meeting with district welfare officers for SC, ST, BC, and Minorities. It was directed that after field-level verification, the list of eligible beneficiaries must be sent to the banks, and units should be linked to bank loans accordingly.
Under the Rajiv Yuva Vikasam scheme, approximately 16.23 lakh applications were received across the state. For Category-1 units, valued at ₹50,000, a full subsidy is provided without bank linkage. However, for Categories 2, 3, and 4, beneficiaries must secure bank loans for the remaining share after subsidy removal.
In Category-2, for units worth ₹1 lakh, a 10% beneficiary contribution through bank loan is mandatory. In Category-3, for units between ₹1 lakh and ₹2 lakh, a 20% contribution is required. In Category-4, for units between ₹2 lakh and ₹4 lakh, a 30% bank linkage is compulsory.
Previously, delays in sanctioning bank loans and demands for collateral from beneficiaries hampered the implementation of the scheme, even when subsidies had been released. To overcome such issues, the government considered allowing beneficiaries to bear the balance themselves, but it concluded that this would defeat the scheme’s objective and lead to misdirection of self-employment initiatives.
Deputy Chief Minister Bhatti Vikramarka recently directed bankers to mandatorily sanction loans to selected beneficiaries under the scheme. He stated that if banks lend ₹1,600 crore, nearly 5 lakh individuals could benefit through the self-employment units.
Separately, under the BC Welfare Department, the government released ₹4,639.81 crore for schemes including Kalyana Lakshmi and scholarships. This includes ₹2,173 crore for Kalyana Lakshmi, ₹2,386 crore for post-matric scholarships and tuition fee reimbursement for BC and EBC students, and ₹80 crore for the BC Overseas Education Fund scheme.
