There has been distress migration in Odisha, especially among educated youths in rural areas, due to lack of self-employment and employment opportunities in organised sector. The liberalisation and privatisation have seriously squeezed scope of employment in Government and public sector. Mostly, this job scarcity has affected the marginalised sections which have been enjoying State protection in form of reservation.
The historically marginalised communities in Odisha like the SCs and STs are systematically denied land, education, skill and access to financial capital due to continuous State apathy. The SCs and STs are largely excluded in business due to a number of socio, economic and political reasons. The State protection is highly required to ensure their meaningful participation in generating production and employment.
In this context along with startup, the standup India scheme lunched by the Prime Minister is there to encourage upcoming entrepreneurs from among SCs, STs and women who have formed private limited companies or partnership firms with 51 per cent ownership in the areas of manufacturing, trading and services, consumer goods and innovative consumer products. It aims to generate employment and promote entrepreneurship of the marginalized sections having very insignificant presence in business and related activities. The scheme has provision of loan facility from Rs 10 lakh to Rs 1 crore to the beginners of last five years with annual turnover of less than Rs 25 crore.
The borrowers have to bear 10 to 25 per cent of the margin money of the project cost as own contribution. The Central Government has set up Rs 10,000 crore venture capital for this purpose and aims to target 2.5 lakh prospective entrepreneur within three years. The repayment plan includes a lower interest rate with monthly instalments for seven years. There is three years income tax holiday and other relaxation for labour and environmental certification to benefit the entrepreneur. The standup India scheme has scope of linkage with other subsidy based schemes in the areas of technology upgradation, food processing and storage, leather, brown fiber, sanitary work etc provided by Ministry of Textile, Ministry of Food Processing, Ministry of Industry and Commerce, Ministry of Small and Medium Enterprises, Ministry of Social Justice and Empowerment and Ministry of Tribal Affairs where the entrepreneurs can choose the schemes to get additional benefit while setting up business. There are also subsidy schemes, especially for SCs, STs and women under different provisions.
In order to promote this there are a number of connect centers such as State SC Finance Corporation, the Khadi and Village Industry Commission ( KVIC), Dalit Indian Chamber of Commerce and Industry (DICCI), Women Entrepreneur Association, DICs, rural self-employment training institutions, skill centers, banks and NGOs which can properly guide and share the relevant information with the entrepreneurs.
In the whole process, the bank has a major role in grounding the plan from loan processing to execution. The scheme has fixed to complete the process within three months. The SIDBI and Nabard have set up standup India connect centers to promote financial literacy and hand holding support so that the new entrepreneurs can have hassle-free access to credit facility. It is said that at least one SC or ST borrower and at least one women borrower per bank branch will have to be covered to reach the target. At the district level, there is district level credit committee with Collector as chairperson with responsibility of periodical review through quarterly meetings involving SIDBI and Nabard and monitor the grievance redress at bank level. The banks have to organise events at district level for sharing of good practices to encourage the entrepreneurs and discuss issues relevant to take forward the process.
There are dedicated institutions such as National Scheduled Caste Financial Development Corporation and National Scheduled Tribe Financial Development Corporation and National Safai Karmachari Financial Development Corporation, specially set up to promote self-employment among SCs, STs and the most vulnerable scavenger community and all these national institutions have State branch offices but due to lack of interest of the State Government, these institutions have failed to create desired impact in the economic development of the SCs and STs. The Odisha SC and ST Finance Development Cooperative Corporation limited functions under Department of ST and SC Development Department, the Government of Odisha. It has been almost non-functional without adequate budget, staff and dedicated leadership to carry forward the mission
of the institute.
The departmental officials going there in deputation with additional responsibility have no role and functioning most ineffectively without accountability. The performances of the institution have not been reviewed regularly.
Many of the Central sponsored schemes and programmes for SCs and STs are not very effectively implemented by the State Government without any accountability to the public. Take the example of Swachha Udyami Yojana for construction, operation and maintenance of pay- and- use community toilet in public private partnership mode.
The scheme has been introduced by the Union Ministry of Social Justice and Empowerment under Swachha Bharat Yojana to liberate manual scavengers with a subsidy of Rs 3.25 lakh as self-employment scheme for rehabilitation. But the Government of Odisha has no initiative to bring change in the life of scavenger communities in the State who are working since generations without any visible change in their life and livelihood. There are schemes but not implemented due to lack of political will and bureaucratic hurdles and above all, lack of awareness among people and beneficiaries of schemes.
In order to encourage SCs and STs in business, the Central Government has made provision of reservation in public contract, departmental purchase, dealer and distributorship but this has not been implemented in the State. The Biju Atma Nijukti Yojana has made provision of only four per cent of purchase of products from small and medium enterprise owned by SC and STs.
Along with Government officials, the banks in the State have a major role in creating opportunities of self-employment to arrest distress migration and unemployment by liberating restrictions and creating an enabling social and economic environment that encourages the marginalized to demonstrate their entrepreneurial ability in business and production growth.
Access to credit is an important economic right of every individual without which economic development especially self-employment and entrepreneurial promotion is not possible. In terms of financial service, Odisha is very poor with less number of bank branches in providing banking service to all in interior parts.
There has been no effort by the State to promote financial literacy among SCs and STs by the Government. Even banks are violating Reserve Bank guidelines while dealing with poor borrowers. Bank officials are discriminately dealing with the marginalised communities. The subsidy money provided by the Government through banks is not reaching to the beneficiaries on time without any difficulties. For successful implementation of any schemes that target the poor and marginalised, political and administrative commitment of the Government is needed.
The private sector and scheduled commercial banks, cooperative banks and skill development institutions and dedicated specialised organisations of Government and private entity and all other stakeholders need to work together for building social inclusiveness in business by promoting SCs and STs and ensuring their role in national building.
(Email—manasbbsr15@gmail.com)