Magazine says govt helped man in biz, he says still awaiting aid

Osmanabad man says state hasn’t paid the promised interest for four months

MUMBAI : In a major embarrassment for the state, its magazine, Lokrajya, published a “success story” on how they helped Osmanabad’s Shrinivas Pakhare start a dairy business in its October edition, only for the youth to claim that the government is yet to give him a sanction letter, in the absence of which he is being forced to pay the interest on the loan for four months, which should ideally be paid by the state.

Editorial team of Lokrajya, which has a circulation of 5 lakh copies, claimed the interest is to be paid only after three months and they stand by the story. Pakhare, who has an MA BED degree, started his business by taking loan of ₹2.5 lakh from Bhausaheb Birajdar Urban Coop Bank from his district in June. He applied for interest benefit for the start-up to the Annasaheb Patil Financially Backward Development Corporation, which was immediately disbursed. The corporation gave him a letter of intent (LOI). Under the rules, the applicant has to pay the principal amount, while the corporation has to give a sanction letter, stating they will pay the interest on the loan. With no letter even after four months, Pakhare said he has been paying both the principal and interest. “I have been paying an EMI of ₹7,200, at an interest rate of 15.5%. I was told there was a technical problem in the file and so the letter was not issued by the corporation. I have been told the proposal has been sanctioned and the letter is expected to be issued in 15 days,” Pakhare said.

Prashant Ghule, coordinator, district skill development centre, Osmanabad, said, “As the

application was made after the disbursement of the loan, we faced a technical problem in sanctioning the proposal. Pakhare’s case is among the 24 pending proposals. It will be approved soon.”

Ghule said the Centre in Osmanabad has given 922 LOIS in the past one year, while sanction letters have been issued only to three. Ajay Ambekar, member of editorial board of Lokrajya, said, “The report of our story being false is baseless. The interest in the scheme is paid only after three months.

Pakhare too will get three months’ interest credited to his account soon.”

The corporation was revived after Maratha stir, demanding financial assistance for business for youth from the community. Community leaders had expressed their displeasure over the disbursal. “Against the LOIS given to about 12,000 applicants, the final sanction letter is given to only a few hundreds. We have been suggesting reforms in the scheme,” said Virendra Pawar, one of the coordinators of the Maratha Kranti Morcha.