As many as 586 small entrepreneurs in the district who set up businesses under the Chief Minister’s Employment Generation Programme (CMEGP) are facing financial difficulties as the process of adjusting their Government subsidy against bank loans remains stalled due to delays in third-party verification reports. The beneficiaries had secured bank loans to establish their businesses under the self-employment scheme. While the Government subsidy amount has already been deposited with the respective banks, it cannot be adjusted against their loan accounts until the required verification certificate is submitted by the appointed agency.

 

Many of these entrepreneurs have been running their businesses for the past three to four years and regularly paying their loan instalments. However, the delay in subsidy adjustment has left them bearing the additional burden of loan repayments, interest and business expenses despite being eligible for Government assistance. Of the 586 beneficiaries identified for third-party verification, the process has reportedly been completed in only 150 cases. However, even in these cases, the verification reports are yet to reach the District Industries Centre (DIC), further delaying the release of the subsidy benefit. The delay has raised questions over the implementation of a scheme intended to promote self-employment and encourage small businesses. Beneficiaries, who have already completed the formalities required to establish their units, continue to make rounds of Government offices and banks for a benefit that has technically reached the banking system but remains inaccessible to them. Sunil Hazare, General Manager, District Industries Centre, Nagpur, confirmed that the verification process was incomplete and reports were still awaited. “Verification was to be conducted for 583 beneficiaries in the third phase. The process has been completed in 150 cases, but not a single verification report has been received so far,” he said. The delay has left entrepreneurs uncertain about when the subsidy will be adjusted against their loans. For small business owners operating with limited financial resources, the continued wait is adding to the cost of running their enterprises and undermining the purpose of the employment generation scheme.