Skip to main content

Dalits, tribals, OBCs, 78% of India, get 37% of loan under Modi's MUDRA scheme for marginalized: FactChecker

Loan disbursal in 2017-18
By Our Representative
Contrary to the claim by India's saffron rulers, who recently said that 55% of all accounts opened under the Pradhan Mantri Mudra Yojana (PMMY or the Prime Minister’s Small Business Finance Scheme) belong to individuals from scheduled castes (SC), scheduled tribes (ST) and other backward classes (OBC), a top data analysis site has revealed that it is the general category which gained the most.
According to FactChecker, "Individuals in the general class received 63% of the total loan amount disbursed in 2017-18, followed by OBCs (22%), SCs (11%) and STs (4%). The breakdown in previous years shows minor fluctuations, but no significant change."
Even if considering that the BJP rulers' claim is true, says FactChecker, it is not enough. To quote from the analysis, "Together, SCs, STs and OBCs form 78.4% of the India’s population, so if 55% of PMMY accounts are in their name this is an under-representation." It adds, "The proportion of OBC, SC and ST groups accessing higher-value loan amounts has not increased since the scheme’s inception."
Further, it says, "The largest-value loans, of above Rs 10 lakh, have been given disproportionately to general category individuals, to the extent of 88.7%. And the average loan size, Rs 45,203, may be too small to have a meaningful impact on job creation."
The authorities' claim 
“Majority of loan amounts have been disbursed under the Shishu category, these are quite small to create a new business unit,” the top site quotes Happy Pant, head of advocacy at the Centre for Budget and Governance Accountability, a nonprofit, as saying.
Giving details of the PMMY scheme, the site says, it was launched by Prime Minister Narendra Modi in April 2015 to "improve access to microfinance for non-corporate, non-farm small/micro enterprises and stimulate job creation. Individuals can apply to private or public banks for loans of up to Rs 10 lakh without having to provide collateral."
The scheme was launched against the backdrop of a large number of micro and small enterprises in India belonging to marginalised groups, who lack access to formal credit. Forced to deal mostly in cash, it was felt, they were forced rely on informal sources of finance such as small-time moneylenders who often charge 60%-100% interest.
Yet, FactChcker notes, under MUDRA, "majority of loan amounts disbursed under the two highest-value categories – Kishor (loan value between Rs 50,000 and Rs 5 lakh) and Tarun (Rs 5-10 lakh) – went to those in the general category, and by a substantial margin."
It adds, "In fact, the percentage share of loan amounts disbursed to the general class under the Kishor category has increased from 73.7% in 2015-16 to 76.8% in 2017-18. Similarly, under the Tarun category, loan amounts disbursed to general category account holders have risen from 83.6% in 2015-16 to 88.7% in 2017-18."
"However", regrets FactChecker, "The average size of a MUDRA loan since the scheme’s inception is just Rs 45,203. No more than 1.4% of loans disbursed have been larger than Rs 5 lakh, according to MUDRA data."
It adds, "Commentators have questioned whether the small size of the average loan can enable employment generation and economic growth. Some critics have also pointed out that most self-employed people may not have full-time work – they may actually be underemployed."
Loan distribution under the highest category, Tarun, Rs 5-10 lakh
It quotes Pant as saying, “It is difficult to understand how important MUDRA is as a source of job creation, since no count of the number of ‘created’ jobs exists. There is no formal data on employment generated due to these loans.”
While MUDRA is supposed to boost the government’s job-creation credentials, the site says, "When FactChecker asked the MUDRA Head Office to share data on jobs directly created through the disbursement of loans under the scheme, they were unable to provide any."
“The details of jobs generated under the scheme are not being captured on the MUDRA portal,” said Ramakant Babu Rahate, deputy general manager at MUDRA, in an email response to FactChecker. “However, the portal captures data pertaining to new loan accounts/entrepreneurs. Total 3.50 crore new entrepreneurs have availed loans under MUDRA Yojana in last three years.”
"This response was based on the assumption that the number of loan accounts opened equals the number of entrepreneurs, which may be inaccurate", comments the site.

Comments

TRENDING

Rescind Gates Foundation award to Modi, demand three Nobel Peace laureates

Counterview Desk
In a major boost to those opposing the award to the Gates Foundation’s proposed to be awarded to Prime Minister Narendra Modi for his Swacch Bharat Abhiyan, three Nobel Peace Prize laureates, Mairead Maguire (1976), Tawakkol Abdel-Salam Karman (2011) and Shirin Ebadi (2003), have in an open letter called upon Milinda and Bill Gates to withdraw their decision, stating Modi is allegedly involved in human rights violations.

Gujarat's incomplete canals: Narmada dam filled up, yet benefits 'won't reach' farmers

By Our Representative
Even as the Gujarat government is making all out efforts to fill up the Sardar Sarovar dam on Narmada river up to the full reservoir level (FRL), a senior farmer rights leader has said the huge reservoir, as of today, remains a “mirage for the farmers of Gujarat”.
In a statement, Sagar Rabari of the Khedut Ekta Manch (KEM), has said that though the dam’s reservoir is being filled up, the canal network remains complete. Quoting latest government figures, he says, meanwhile, the command area of the dam has been reduced from 18,45,000 hectares (ha) to 17,92,000 ha.
“According to the website of the Sardar Sarovar Narmada Nigam Ltd, which was last updated on Friday, while the main canal, of 458 km long, has been completed, 144 km of ranch canals out of the proposed length of 2731 km remain incomplete.
Then, as against the targeted 4,569 km distributaries, 4,347 km have been constructed, suggesting work for 222 km is still pending. And of the 15,670 km of minor canal…

Report on "torture" in Kashmir jails: 44% detainees stripped naked, 29% electrocuted

Counterview Desk
A recent report titled “Torture: Indian State’s Instrument of Control in Indian-administered Jammu & Kashmir”, published by the Association of Parents of Disappeared Persons (APDP), has claimed to build “on the body of human rights documentation on torture” in Jammu and Kashmir (J&K) through an examination of 432 case studies. It seeks to focus on "the trends and patterns, targets, perpetrators, contexts and impact of torture" in the state.

Ceramic worker dies: 20,000 workers in Thangadh, Gujarat, 'risk' deadly silicosis

By Our Representative
Even as the country was busy preparing for the Janmashtami festival on Saturday, Hareshbhai, a 46-year-old ceramic worker from suffering from the fatal lung disease silicosis, passed away. He worked in a ceramic unit in Thangadh in Surendranagar district of Gujarat from 2000 to 2016.
Hareshbhai was diagnosed with the disease by the GCS Medical College, Naroda Road, Ahmedabad in 2014. He was found to be suffering from progressive massive fibrosis. He is left behind by his wife Rekha sister and two sons Deepak (18) and Umesh (12),
The death of Hareshbhai, says Jagdish Patel of the health rights group Peoples Training and Research Centre (PTRC), suggests that silicosis, an occupational disease, can be prevented but not cured, and the Factory Act has sufficient provisions to prevent this.
According to Patel, the pottery industry in the industrial town of Thangadh has evolved for a long time and locals as well as migrant workers are employed here. There are abou…

Bullet train impact report Japan agency property: Govt of India tells Gujarat NGO

The National High Speed Rail Corporation Limited (NHSRCL) has told Gujarat-based environmental organization, Paryavaran Suraksha Samiti (PSS) that the detailed report of Japanese International Cooperation Agency (JICA) representatives on their visit to Gujarat and Maharashtra assess the impact of the Mumbai-Ahmedabad bullet train project on farmers is not its property, but that of JICA.

NHSRCL letter to PSS, signed by activists Rohit Prajapati, Krishnakant and Swati Desai, comes following the latter’s request to it on June 10 for the report. PSS was one of the NGOs that represented JICA on the project, saying, if implemented, it would adversely impact farmers, even as pointing towards the fact that the project itself is unviable and Indian Railways needs to invest, instead, more on upgrading the present railway infrastructure.
Following the NHSRCL reply, PSS has shot a second letter to JICA, insisting that the latter should share a copy of the report, even as providing details of the …

Karma tribal festival an occasional to campaign for tribal rights: IPMSDL

By Our Representative
The International Indigenous Peoples Movement for Self Determination and Liberation (IPMSDL), in a solidarity statement has suggested that the current Karam festival of Central India -- which seeks to promote sisterhood, friendship, cultural unity, and closer link to nature -- should be the occasion to campaign against alleged efforts to violently drive away forest dwelling communities from their forest homes.
"Millions are threatened to lose lands and livelihood under the implementation of Forest Rights Act (FRA) of 2006", the statement States, adding, "As corporate interests continues to enter tribal territories and extract profit from its natural resources, indigenous people are pushed to further marginalization and discrimination."
Asserting that indigenous movement in India "remains steadfast in keeping their culture, deeply linked to their lands alive by carrying out their heritage and struggles", IPMSDL, even as extending "…

Allow international human rights observers, media to access Kashmir: US lawmakers

Counterview Desk
In a letter to US Secretary of State Mike Pompeo, two members of the American Congress, Pramila Jayapal and James McGovern, raising "significant concerns" about what they call "humanitarian and human rights crisis in Jammu & Kashmir”, quoting "credible reports" from journalists and advocates on the ground" have said that "the Indian government has detained thousands of people with no recourse, imposed de facto curfews on residents' and cut off internet and telephone access in the region.”

Amidst Modi celebrations, thousands protest 'massive' submergence in Narmada Valley

By Our Representative
Thousands of women and men gathered on at the Shaheed Stambh in Badwani, Madhya Pradesh, to raise their voice against what they called "the destruction of the Narmada Valley", protesting against Prime Minister Narendra Modi and Gujarat BJP rulers for celebrating the Sardar Sarovar dam being filled up to the full reservoir level (FRL) on September 17, which also happens to be Modi's birthday.
Calling it a black day for the people of the Valley, whose villages and farms got submerged because of highest-ever water level having been achieved in the dam, the Narmada Bachao Andolan (NBA), which organised the parallel rally across the border with Gujarat, regretted in a statement that Modi's celebration at the dam took place amidst " martyrdom of the Valley".
The demonstration in Badwani was preceded by a vehicles rally, which took rounds of the city streets. They were joined by people from several villages of Dhar district. They gather…

Kandla Port Trust activities 'destroyed' mangroves, affecting rare camel species: NGT

By Rajiv Shah
Taking serious note of large-scale destruction of mangroves on about 750 acres in Bhachau taluka of Kutch district, the National Green Tribunal (NGT), Delhi, has “directed” the Gujarat government, its forest department, and the Gujarat Coastal Zone Management Authority (GSZMA), to “jointly inspect the area” and fix responsibility as to who is “responsible for obstruction of the creeks” next to the Kandla Port Trust (KPT), leading to the damage to the plantations in the area.

Narmada valley: SC notice to Gujarat, MP, M'rashtra on submergence sans rehabilitation

By Our Representative
Thr Supreme Court has issued notice to Gujarat, Madhya Pradesh and Maharashtra governments following a Narmada Bachao Andolan (NBA)-backed petition seeking the explanation as to whether large areas of Narmada Valley have gone into submergence by filling up the Sardar Sarovar dam up to the full reservoir level (FRL) without rehabilitating the project affected families (PAFs).