MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES (SHRI MAHABIR PRASAD)
(a): The Khadi and Village Industries Commission (KVIC) does not
provide loans to entrepreneurs but extends margin money assistance
to entrepreneurs to set up village industry units under the Rural
Employment Generation Programme (REGP) of the Central Government.
Under the REGP, banks provide loans to entrepreneurs in
combination with margin money (grant) assistance from the KVIC.
The State-wise details of the estimated amount of loans provided
to weaker section persons under the REGP during the last five
years (latest data available up to 2003-04) are given in the
Annexure enclosed.
(b): Yes, Sir.
(c)and (d): The irregularities noticed pertain to delays in
release of margin money under the REGP to the beneficiaries or
release of margin money to ineligible units. The delinquent
officials concerned of the banks, State Khadi and Village
Industries Boards and the KVIC have been proceeded against as per
rules.
(e): Instructions have been issued by the KVIC to its State
Directors to ensure release of margin money assistance
expeditiously and to eligible units only.