Kanpur Khadi Conference Exposes Systemic Loan Delays and Calls for Enhanced Government Support
A significant buyer-seller conference was organized as an integral component of the divisional Khadi and Gramodyog exhibition, which took place at the Brijendra Swarup Park Lawn in Kanpur. The event was orchestrated by the Uttar Pradesh Khadi and Gramodyog Board, drawing a diverse array of stakeholders committed to rural and traditional industries.
Wide Participation from Key Stakeholders
The conference witnessed active participation from representatives of multiple pivotal organizations. Attendees included officials from the Khadi Gramodyog Board, the Khadi Gramodyog Commission, the District Industries Centre, various self-help groups, both established and emerging entrepreneurs, Lead Bank officials, and office-bearers of the Khadi Gramodyog Federation. This broad representation underscored the collective effort to address challenges and foster growth within the Khadi sector.
Entrepreneurs Voice Frustration Over Loan Approval Hurdles
During the proceedings, entrepreneurs associated with Khadi and Gramodyog units prominently raised critical issues hindering their operations. Experienced entrepreneurs expressed deep frustration, citing unnecessary delays and excessive formalities in the bank loan approval process. They reported that these bureaucratic obstacles forced them to make repeated visits to banks, often leading to abandoned efforts midway due to mounting frustration and resource depletion.
Speakers at the conference highlighted that clear directives exist for providing loans without guarantee under key government schemes, namely the Prime Minister's Employment Generation Programme and the Chief Minister's Employment Scheme. Despite being selected by the Unit Selection Committee, which is chaired by the district magistrate of Kanpur Nagar, entrepreneurs face unwarranted harassment from banks. In numerous instances, loans are not approved even when entrepreneurs present guarantees, contradicting the government's intention to maximize employment generation through these initiatives. The core objective of Khadi Gramodyog—to provide employment and promote environmental conservation—is thus being undermined by these procedural inefficiencies.
Leadership Insights and Demands for Policy Reforms
Suresh Gupta, Chairman of the Uttar Pradesh Khadi Gramodyog Federation, elaborated on the systemic problems faced by units. He emphasized the need to reinstate the rebate system on Khadi from the Central government, as it was previously implemented, to enhance the popularity and affordability of Khadi products. Gupta also outlined the conference's broader objective: to facilitate technology exchange among entrepreneurs and share product information, thereby boosting competitive capacity in the market and driving sustainable growth.
New Initiatives and Employment Achievements Announced
Coordinator Abhay Tripathi provided an update on upcoming developments, informing attendees that a new scheme related to Khadi Gramodyog will be implemented soon. To ensure its effectiveness, a major conference will be organized, inviting ministers and senior officials to address entrepreneurs' problems comprehensively and devise actionable solutions.
District Gramodyog Officer Ashok Sharma shared positive news regarding employment generation, revealing that the board established 105 new units this year, providing employment to 407 families. He assured that the issues raised by entrepreneurs during the conference will be forwarded to headquarters for prompt resolution, demonstrating a commitment to addressing grievances.
Banking Perspective on Loan Sanctions
Rajesh Kumar Giri, Chief Manager of the Uttar Pradesh Cooperative Bank in Kanpur, offered insights from the banking sector. He stated that the bank aims to provide loans to every eligible entrepreneur but noted that many applications remain pending due to incomplete or missing necessary documents. Giri clarified that applicants with complete documentation typically receive loan sanctions within one week. However, he emphasized that applicants with poor civil scores cannot be granted loans as per established rules, highlighting the balance between support and regulatory compliance.
