Telangana Self Employment Scheme Margin Money in the Rural Areas 78


Erstwhile Government of Andhra Pradesh issued comprehensive guidelines for implementation of Self Employment Schemes in all the Welfare Departments for 2013-14.

Erstwhile Government of Andhra Pradesh also issued guidelines for implementation of Self Employment Scheme (Margin Money) in the Rural Areas. In this regard, it is observed that several representations were received by the Government from the general public and the elected representatives from the Gram Panchayat to the State Level for modifications of the orders issued in the reference 1st read above, so as to ensure that the intended benefits reach most of the eligible beneficiaries belonging to the BCs.

Government after careful examination of the matter in detail hereby order that (i) the existing age limit in respect of BCs , be increased from 21-40 years to 21 -55 years for the schemes benefitting the individuals, as most of the people belonging to Backward Classes / Castes are engaged in professional / artisan activities etc., (ii) The age limit is relaxed upto 60 years for agriculture and allied sectors, since land pattas are mostly in the names of head of the family. (iii) It is also ordered that there is no age limit for the group activities. (iv) It is also ordered that the beneficiaries food security cards issued by the Govt. of Telangana / Aadhaar card shall be insisted for all beneficiaries to register through Telangana State Online Beneficiary Management and Monitoring System (OBMMS), which is being managed and administered on day-to-day basis by the Centre for Good Governance (CGG).(v) It is also ordered that, the Identification /selection of beneficiaries to be ensured at the level of Gram Sabha only and final selection to be done at the Mandal level by a Screening Cum Selection Committee after cross verification with Samgara Kutumba Survey.

Selection of Beneficiaries :

a) The total targeted beneficiaries shall be subdivided for the Districts and Mandals / Municipalities in proportion to the population of the BC’s by the Corporation .

b) The composition of the Screening Cum Selection Committee shall be as follows:

I. MPDO/Municipal Commissioner (Municipality)/Zonal Commissioner (in case of Municipal Corporation) – Convener.

II. Managers of all Banks in the jurisdiction of the Mandal.

III Representatives of the B.C.Finance Corporation.

IV Representative of DRDA.

V President Mandal Mahila Samakhya/Town/Slum level federation in respectof Municipalities and Municipal Corporations.

c) All the beneficiaries shall apply through the Telangana State online beneficiary monitoring system to ensure transparency and accountability.

Implementation & Monitoring Mechanism:

A District Monitoring Committee chaired by the District Collector, shall monitor the implementation of the scheme. The composition of the District Monitoring Team shall be as follows:

District Collector – Chairman

PD, DRDA – Convenor
ED, SC Corporation – Member ED, BC Corporation – Member
DM, Minority Corporation – Member AD, Disabled Welfare – Member
PD, W&CD – Member DTWO – Member LDM – Member
President, Zilla Samaikya/ Town Level Federation – Member

The District monitoring Committee shall perform the following functions:

a) The District Collector shall convene special DLBC’s in order to improve expedite the process of the sanction of Economic Support Scheme.
b) Ensure the Constitution of selection Committees at the Mandal level & ensure that the selection beneficiaries is done within the time frame.
c) Preparation of the District Action Plan of the Economic Support Schemes.
d) Review the progress of the scheme at frequent intervals
e) District Level Committee shall examine any complaints in the process of selection of beneficiary and grounding of scheme.
f) Any other intervention that may be needed for the successful implementation of the schemes

4. Further, to have clarity and also to ensure that the compendium of guidelines are available to the district administration, in one place, the following orders already issued in the reference 2nd read above, is reiterated for convenience and easy implementation:-

a) People belonging to notified B.C. communities , either individual or groups whose annual income from all the sources is per head upto Rs.60,000/- or below per annum in the rural areas are eligible for financial assistance under the scheme.

b) The applicant should produce Caste, Income and Nativity certificates issued by the Government of Telangana at the time of selection itself.

c) Employees and students are not eligible for financial assistance under the schemes.

d) Activities under Agriculture, Industries, Small businesses, Service, Transport Sectors etc., will be provided with this financial assistance.

e) The financial assistance from the Telangana Backward Classes Cooperative Finance Corporation Ltd., by way of subsidy would be linked to the credit component of the Commercial banks.

f) Preference shall be given to :

i) Candidates with higher qualification or requisite qualification required for skill.

ii) Candidates who are trained under any skill improvement Programme of the Government or Welfare Corporations either in the current year or earlier.

iii) Beneficiaries who are availing the economic support scheme for the first time.

g) 33.33 % women beneficiaries should be covered in the above scheme at the District level at the time grounding of units.

h) The revised pattern of assistance will be 50% of the Unit Cost, not exceeding Rs 1,00,000/- as upper limit depends upon the requirement of the scheme to have financial viability, i.e., subsidy component. The range of unit cost may vary from a minimum of Rs.15,000/- to Rs.2,00,000/- maximum.

i) In case, where the unit cost exceeds Rs. 2,00,000/- the excess portion come as bank finance, as the subsidy from the BC Cooperative Finance Corporation Ltd., is limited to Rs.1,00,000/-.

j) The Executive Directors must explain this position to the bankers and beneficiaries in the beneficiary identification camp, so that the bankers give consent letters for the sanction of bank loan.

k) Only one economic support scheme shall be granted to one family as defined in the Food Security Card issued by the Government of Telangana.

l) The beneficiary can choose any activity of his choice which are viable financially, as detailed in serial number (v) supra.

m) After completion of all the formalities i.e., documentation etc., with respect to selection of beneficiaries etc., the bank branch will give loan account number (which is to be opened with ‘Zero balance’) and also exclusive non-operative SB a/c number opened in the name of beneficiary which is linked to above loan account. This link has been suggested since loan account cannot be opened with credit balance.

n) The Bankers should furnish the details of bank loan a/c of individuals to the Executive Directors concerned with a request to release the subsidy through the MPDO / Mandal Level Selection Committee. In turn the Executive Director should immediately submit the same list to the Vice Chairman & Managing Director, Backward Classes Co-operative Finance Corporation Ltd.,Telangana Hyderabad through online and a hard copy.

o) The subsidy will be released for the credit of loan a/c specified in the individual’s application within a maximum period of 15 days up on receiving request from the Executive Directors to the Vice Chairman & Managing Director, Backward Classes Co-operative Finance Corporation Ltd., Telangana, Hyderabad.

p) Upon receiving subsidy into the loan linked non-operative savings account of the beneficiary, the bank branch shall take steps for grounding the unit within a maximum period of 15 days, utilizing the Subsidy released by the Government. This time line is relaxable only in cases where purchase committee needs to be constituted (Eg. Dairy & other A.H. units).

q) Subsidy for the beneficiaries shall be administered through the online system.

r) The District Monitoring Committee chaired by the District Collector will be responsible for the implementation and monitoring of the schemes at district level.

Utilization Certificates:

The Utilization Certificates are to be issued by the bankers within 15 days of grounding of the unit.

Other Instructions:

s) The V.C. & Managing Director, Telangana Backward Classes Cooperative Finance Corporation Ltd., Hyderabad and Convenor, State Level Bankers’ Committee will monitor the scheme at the State-level.
t) Any other operational guidelines for implementation of the scheme shall be issued by the VC & Managing Director, Telangana Backward Classes Cooperative Finance Corporation Ltd., Hyderabad.

5. The above guidelines for implementing of Economic Support Schemes of B.C.Welfare Department shall be undertaken within the Budget Provision allocated for the purpose

6. The Vice Chairman & Managing Director, Telangana Backward Classes Cooperative Finance Corporation Ltd.,Telangana , Hyderabad shall take necessary action accordingly.


About Pavan

Advocate, Journalist and Founder of Telangana Navanirmana Sena From Mahabubnagar,Telangana State, India Email Me -- pavan@tgnns.com


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