Just 2 out of 15 board directors in NSFDC from SC community: House panel

A parliamentary panel has pointed out that the National Scheduled Castes Finance and Development Corporation (NSFDC), mandated to work for the economic uplift of Scheduled Castes, only has two members out of 15 in the Board of Directors from the SC community.

In its response, the Social Justice and Empowerment Ministry said that a proposal for four directors from the SC community has been approved by the Social Justice and Empowerment Minister, but the parliamentary panel called the reply "vague" and unconvincing.

"The Committee are not convinced with the vague reply of the NSFDC in response to their recommendation that vacant posts in the Board of Directors of NSFDC should be filled at the earliest while ensuring adequate representation of Scheduled castes therein," the panel said.

The Committee on the welfare of scheduled castes and scheduled tribes tabled its report in Parliament on Monday.

In the report, the Committee pointed out that out of the total 15 members, there are currently only two SC members on the Board of Directors.

According to the information provided to the Committee, there are two vacancies in non-official and seven vacancies in the Official Board of Directors (including 3 Official Director posts in State SC Development Corporation) lying vacant.

"The Committee strongly feels that induction of an SC candidate in the Board of Directors would prove to be a catalyst in shaping the overall functioning of NSFDC," it said.

The Committee said that the equity support provided to NSFDC by the Ministry of Social Justice and Empowerment has been stopped from 2020-21 for three years till 2022-23.

"At the same time, the Committee may also be informed whether or not the Ministry has resumed the equity support for the current year.

"The Committee would like to stress that in order to make NSFDC financially healthy in disbursing funds and increase the number of beneficiaries, the Ministry should provide optimal equity support for its schemes to stay afloat and fructify," the panel said.

Further, the Committee noted that out of 37 state SC Development Corporations, only 17 are performing.

The Committee suggested that the lending models be revised to make them more acceptable to the banks.