New Delhi: The Centre on Tuesday pulled up several states for inadequate use of funds allocated to them for promotion of economic and developmental activities among backward classes, asking them to ensure that the money is utilised in a "more effective manner".
"It is a matter of concern that some states like Bihar, Madhya Pradesh, Orissa, Uttar Pradesh, Assam and Manipur are not taking enough steps for withdrawal of allocated funds," Union Minister for Social Justice and Empowerment Mukul Wasnik said.
He was addressing a national conference of the managing directors of state channelising agencies (SCAs) of National Backward Classes Finance and Development Corporation (NBCFDC) here.
"Continuous default in repayment of loan instalments by the SCAs of these states and non-availability of adequate government guarantee has created a situation where disbursement of loans by the apex corporations to these SCAs has become difficult," he noted.
The minister asked the participating managing directors of the SCAs to take "effective measures" to ensure that loans are repaid on time and also "impress upon" their respective state governments to provide government guarantees so that "poorer segment of the backward class are not deprived of concessional financial assistance available the corporation's scheme".
The state channelising agencies are nominated by the respective state governments and are responsible for implementing the schemes of the corporation.
"We have to find workable solutions to ensure that the target groups get finance at concessional rates of interest and establish market linkages for products. We must remember that the target group belongs to one of the most vulnerable sections of the society and therefore it is our duty to ensure that all possible help reach these sections in most effective manner," he said.
Efforts should be made not only to provide finances at concessional rate of interest but also to assist the beneficiaries in skill up gradation and providing them access to modern technology, he said.