NEW DELHI: Faced with the twin prospects of the economy dipping further and unemployment, the NDA government is planning to turn the limelight on the flagship Mudra scheme. The scheme extends loans from Rs 50,000 to Rs 10 lakh to the youth for undertaking gainful activities.
“The Mudra scheme has so far disbursed of loans to more than eight crore youths across the country. It’s on a much bigger scale than the Ujjwala scheme. While free LPG connections were given to the poor, the Mudra loans are universally available. The focus within the government is to impart training and guidance to the Mudra loan beneficiaries to help them become employers,” said a senior official of the NITI Aayog.
The Ujjwala scheme was credited to have given the BJP rich political dividends in Uttar Pradesh Assembly elections. However, with the GDP growth slipping to 5.7 per cent in the last quarter and job creation not matching the PM’s poll promise, the government is hoping that the Mudra scheme will help it beat the disappointment.
“So far, the focus of the government has been on the Start Up campaign, which involved dedicated funds for first generation entrepreneurs along with mentoring support. However, the result has not been encouraging. Therefore, the government will seek to impart adequate skill training to the youth who availed the Mudra loans to add net jobs,” added the official.
Since the Mudra loans are given for non-agricultural purposes, it’s envisaged that it could help create employment in the informal sector. The Mudra scheme has three categories for loans up to Rs 50,000, Rs 50,000-Rs 5 lakh, and Rs 5 lakh-Rs 10 lakh.