TSMFC struggles to implement schemes owing to fund crunch

Hyderabad: Even as the second quarter of the financial year is near completion, funds strapped TS Minority Finance Corporation struggles to implement the schemes, as only Rs 36 crores were released in the first quarter by the State government. 

According to official sources, Rs 36 crores for the first quarter were released half of which were utilised in the ‘driver employment programme’, where 324 cars with a subsidy amount of Rs 15.20 crores distributed in the much-hyped programme attended by Deputy Chief Minister Mohammad Mahmood Ali, Home Minister, Naini Narsimha Reddy, Hyderabad MP, Asaduddin Owaisi, Secunderabad MP, Bandaru Dattatreya and Syed Akbar Hussain, chairman, TS Minorities Finance Corporation. The remaining will be spent in the ongoing process of applications for the bank linked subsidy scheme of up to Rs 50,000 numbering 1,744 and other schemes. 

It may be mentioned here that after formation of Telangana State, the TS Minority Finance Corporation has invited applications only once for the financial year 2015-16. Some 1.83 lakh applications were received at that time, but the end only 8,300 applications were considered leaving behind the remaining applicants apprehensive about their fate. In the first phase of processing these applications, Rs 69 crores was released as subsidy for the 8,300 selected candidates. “Rs 2000 crore is the latest budget for minorities, but if we consider all the above applications the funds required would be Rs 2,600 crores which is near impossible,” said the source. 

However, the Government has eased the norms recently by issuing a G O 41 for benefitting more applicants, who are within the range of Rs 50,000 loan. Under this category a total 1,744 application are being processed after the format was changed and updated to adopt the changes. All these applicants would be provided 100 percent subsidy, as per the changes and Rs 7 crores will be utilised for this purpose. The process of scrutiny is under progress and is likely to be completed with next fortnight. However, there is no clarity that the election blues will not impact its implementation in the coming days. 

Notwithstanding of the current fund crunch, the officials are optimist about considering the some 3,000 to 4,000 loan applications of up to Rs 1 lakh under the subsidy scheme, with 80 percent subsidy. “We are considering providing loans to poorest of the poor under this category,” said an official.

BY Md Nizamuddin