NEW DELHI: Finding itself under relentless Opposition attack on the issue of job creation, the government has planned a comprehensive study to assess the impact of its ambitious ‘Mudra’ scheme.
Officials said the study will assess the impact of the Prime Minister Mudra Yojna (PMMY) on the outreach and access for the micro entrepreneurs — whether the scheme has made loan access easy for them. The study will cover about 1,00,000 PMMY borrowers and will assess economic, social as well as the political impact of the Mudra scheme.
Micro Units Development & Refinance Agency Ltd (MUDRA), will hire an expert agency to conduct the study.
The study will assess whether the scheme has led to any changes in the income growth of the beneficiaries. It will also note any change in the business in terms of increase in turnover of the enterprise, income, employment etc.; any improvement in the assets of the beneficiaries; recovery of assets hypothecated or mortgaged among others.
Under social impact, the study will see if the scheme has brought about improvement in terms of education and health related expenditures. It will also look into the ratio of enterprises headed by women and their performance, involvement of women entrepreneurs in new or non-traditional activities, confidence and assertiveness by the micro-entrepreneurs —in particular, the role of women entrepreneur in household and community decision-making.
Prime Minister Narendra Modi has often talked about PMYY as one of the government’s most successful projects generating employment. In this Independence Day speech also, he said more than 13 crore people were given loans under PMMY, of which 4 crore were first-time borrowers.
The Congress, however, claims that the Mudra scheme has hardly created employment opportunities in the country.
PMMY, a scheme to finance small business enterprises, was launched on April 8, 2015. Under the scheme, all banks are required to finance micro-entrepreneurs with loan requirement up to `10 lakh. Loans are granted under three categories without any collateral — loans up to `50,000 come under ‘Shishu’, between `50,001 and `5 lakh under ‘Kishore’ and between `5,00,001 and `10 lakh under the ‘Tarun’ category.
Earlier, the loan was meant for micro-enterprises engaged in manufacturing, trading and services sectors.
To expand the scope of beneficiaries, micro-enterprises engaged in activities allied to agriculture, too, were brought within the ambit of PMMY loans from fiscal 2016-17.
Boost to enterprises
Micro enterprises are an important sector of the economy, providing jobs to millions of people and taking care of their income generation as well. It is estimated that there are more than 60 million micro units which support over 100 million people for their jobs and livelihood. MUDRA and MUDRA Yojana are meant to support these enterprises and provide the required funding support to these units in the country.