You are here: Home » Economy & Policy » News
Spectrum allocation to OTT services: 5 changes in new telecom Bill
Business Standard

MUDRA scheme 'practically worthless' in promoting businesses: Chidambaram

Senior Congress leader P Chidambaram on Thursday criticised the Centre's MUDRA loan scheme, saying it was "practically worthless" in promoting businesses.

Topics
P Chidambaram

Press Trust of India  |  New Delhi 



P Chidambram
Photo: Dalip Kumar

Senior Congress leader on Thursday criticised the Centre's MUDRA loan scheme, saying it was "practically worthless" in promoting businesses.

The former finance minister also said he is not surprised that the non-performing asset (NPA) ratio is the highest under the MUDRA loan scheme.

"I have long maintained that the MUDRA loan scheme is practically worthless to promote businesses," Chidambaram said on Twitter.

The State Bank of India has taken pride that in the Tamil Nadu-Puducherry zone, the bank had distributed Rs 1000 crore to 26,750 MUDRA beneficiaries in 2021-22, he said.

Mighty impressive numbers until one does the mathematics, Chidambaram said, adding that the average size of the loan to 26,750 beneficiaries is only Rs 3.73 lakhs.

What new business can be started with Rs 3.73 lakh and how many jobs can be created with Rs 3.73 lakhs, he asked.

The Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by Prime Minister Narendra Modi on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, September 22 2022. 12:20 IST

RECOMMENDED FOR YOU

.