Modi’s pet project has many takers, but no givers

The amount disbursed under the Micro Units Development and Refinance Agency scheme saw a steep decline this year.
Prime Minister Narendra Modi (Photo | PTI)
Prime Minister Narendra Modi (Photo | PTI)

BENGALURU: Despite being a pet scheme of Prime Minister Narendra Modi, the amount disbursed under the Micro Units Development and Refinance Agency (MUDRA) scheme saw a steep decline this financial year.

MUDRA was announced by Finance Minister Arun Jaitley in 2015 Budget to support micro industries. Subsequently, the Prime Minister announced the Pradhan Mantri Mudra Yojana to provide easy capital of up to Rs 10 lakh to small and micro enterprises.

According to data analysed by The Sunday Standard, Andhra Pradesh saw a whopping 41 per cent fall in the disbursed amount between 2015-16 and 2016-17. Karnataka, Tamil Nadu and Maharashtra witnessed 28 per cent, 20 per cent and 18 per cent decline respectively.

Kerala saw a decline of 32 per cent, whereas Uttar Pradesh and Rajasthan recorded a decline of 29 and 19 per cent respectively. Assam is the only state which has seen 26 per cent rise in loan disbursal. In the 2017-18 Budget, Jaitley doubled the allocation for MUDRA Yojana from Rs 1,22 lakh crore to Rs 2.44 lakh crore. This time, he said, the priority would be for Dalits, tribals, backward classes and women.

The MUDRA Yojana provides loans of up to Rs 10 lakh for income-generating micro enterprises.

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