Slow fund flow stalls J&K’s employment push

Srinagar, Aug 8: Sluggish disbursal of funds and a widening gap between targets and actual implementation have cast a shadow over employment generation efforts in Jammu and Kashmir.

The Union Territory Level Bankers’ Committee (UTLBC), in its recent review, flagged serious concerns over the declining performance of flagship self-employment schemes, citing delays in case sponsorship and shortfalls in credit disbursement. Despite ambitious targets, thousands of aspiring entrepreneurs remain stranded in procedural limbo, exposing cracks in the UT’s employment push.

Employment generation schemes in Jammu and Kashmir have witnessed a notable decline in performance during the ongoing financial year, as revealed in the 16th meeting of the Union Territory Level Bankers’ Committee (UTLBC) held on June 21.

The meeting reviewed the progress under various self-employment initiatives and flagged serious concerns over falling sponsorship of cases and credit disbursals.

As per the minutes of the meeting, banks operating in J&K disbursed Rs 1,615.40 crore in favour of 40,069 beneficiaries under schemes like PMEGP, NRLM, NULM, PMWMY, Credit Card Scheme (CCS) for Artisans & Weavers, and JKREGP. These figures stood against the sponsorship of 57,099 cases, which is well below the annual target of covering 53,592 beneficiaries involving Rs 1,754.92 crore in credit.

Of the total disbursed amount, Rs 903.28 crore was extended to 17,090 beneficiaries under PMEGP, Rs 597.59 crore to 18,591 under NRLM, Rs 22.04 crore to 1,230 under NULM, Rs 5.74 crore to 379 under PMWMY, Rs 29.66 crore to 1,909 under CCS, and Rs 57.09 crore to 870 beneficiaries under JKREGP.

Chief Secretary Atal Dulloo, while reviewing the performance, expressed strong displeasure over the declining trend.

As per the minutes, he "noted with displeasure the YoY decrease of 20% and 17% in sponsorship and disbursement of cases, respectively."

He further observed, "Departments/ sponsoring agencies have not performed up to mark in sponsorship of cases, which led to low performance of banks in disbursement of credit and coverage of beneficiaries under Employment Generation Schemes."

Calling for the timely disposal of applications, the Chief Secretary directed the banks that “banks must not keep applications pending beyond stipulated timelines which is a demotivating factor for the applicant to avail the loan under employment generation schemes.” He further emphasised, “All eligible applications must be disposed of within the stipulated Turnaround Time (TAT).”

The MD & CEO of J&K Bank, while addressing the House, urged for greater awareness at the grassroots level about available schemes. He said, “The banking fraternity must make people aware of the availability of various sponsored schemes/ employment generation schemes.” Stressing the role of branch-level engagement, he added, “Operative levels of banks need to be sensitised to guide, encourage and handhold the beneficiaries to avail the credit under these schemes.”

The meeting concluded with clear directions aimed at course correction. Banks have been asked to provide hassle-free credit to unemployed youth under all employment schemes and ensure that no eligible case is kept pending beyond 60 days. Departments and sponsoring agencies were told to exercise strict diligence in identifying and forwarding quality cases to banks to improve scheme implementation on the ground.

As per the minutes, both banks and sponsoring agencies were reminded that their roles are equally important to meet targets under the Annual Credit Plan.