MADURAI : Thousands of loan applications under Annal Ambedkar Business Champions Scheme (AABCS) implemented by the Micro, Small and Medium Enterprises (MSME) department have been rejected allegedly without giving a reason, according to an RTI activist.
AABCS is a state scheme launched to promote the economic development of SC/ST entrepreneurs. Under the scheme, the state government provides a 35% capital subsidy on the eligible project cost and a 6% interest subvention for loans sanctioned.
According to an RTI reply, of the 12,472 people who had applied for loans under AABCS for 2023-24, only 1,389 people got the nod. For 2024-25, around 5,157 people applied, but only 906 got the approval (up to December 31, 2024). As many as 11,083 applications were rejected for 2023-24, while the number for 2024-25 was 4,251.
According to RTI activist S Karthick, no reason was shared by the department for the rejection.
Karthick told TNIE, “As the scheme aims to improve business and economic life of weaker sections of the society. Despite asking the reason for rejections, MSME authorities gave no proper response. A committee must be formed in each district to find out the reasons for the rejection. The reasons should be uploaded on the website itself.”
However, officials maintained there wasn’t any bias. According to them, applicants hadn’t done their homework for the project.
An official from the Micro, Small and Medium Enterprises department told TNIE, “In the event of the announcement the scheme, there was an overwhelming response from the weaker sections of the societies. The task force, which monitors and scrutinises the applications, found a number of issues in them. Many of the applicants didn’t submit their business project report properly. A few couldn’t support their project with collateral. Some of them just filed applications. During the interview, many applicants didn’t know anything about their business project. As a result, many got rejected.”
Several activists also expressed that many tribes aren’t even aware of the scheme.
Tamil Nadu Hill Tribes’ Association (Dindigul) secretary T Ajay Gosh said, “This seems to be a good scheme, but despite the publicity, many from ST communities aren’t aware of it. Officials should organise training on how to prepare project reports. These tribes have just basic knowledge about business. Officials should offer business grooming classes for these tribes for their confidence.”