The much-hyped artisan credit card (ACC) scheme has become “futile” for the artisans in Kashmir as the state government has not been able to deposit its interest share with the lender bank.
The scheme was launchedwith fanfare by the National Conference led government in 2013 to providefinancial assistance to more than 3 lakh marginalised craftsmen. However, overthe years the failure of the state government to pay its interest share to thelender bank has made the scheme worthless for the artisans.
Accordingto a senior handicraft department official, the amount of government interestshare has accumulated to Rs 30 crore under the ACC.
“We were hopeful that therewill be some allocation for the scheme in the budget, but to our dismay therewas no such announcement. We had asked the government to release the amount sothat it can be credited to respective artisans’ accounts. But the government hasstated that it would release the outstanding amount in a phased manner,” hesaid.
As perthe provisions of the scheme, of the 13 percent interest charged on the ACCloans, 3 percent is to be borne by the beneficiary artisan and 10 per cent bythe state government.
However, as per the scheme,the government share came quarterly only after the artisan paid full 13 percentinterest incorporated in the monthly installment.
“Thegovernment has always neglected the artisans. This ACC has turned to be a big trap.While availing this scheme, we were assured that the government will provide 10percent interest share, but for the last one year they have failed to pay anyshare,” said Nasir Ahmad, an artisan.
Due to the non-release ofthe interest amount by the government, most of the artisans have failed tocontinue with their EMIs, he said.
Seniorvice-president, Kashmir Chamber of Commerce and Industry, Nasir Khan said thatthey have taken up the issue with the government but “our pleas have fallen ondeaf ears”.
“As a matter of fact, weare actually demanding ACC loan waiver as the artisans have incurred lossespost 2014 floods,” he said adding that during the PDP-BJP government they tookthe issue with then CM Mehbooba Mufti who “assured action”, but till now “nothinghas been done” in this regard.
Secretary, Artisans ForumKashmir, Bashir Irfan told Greater Kashmir that the ACC “was a trap laid by thestate government in collaboration with J&K Bank to further marginalise theartisan community of Kashmir.”
“Initially we were told bythen industries minister that the ACC is a rehabilitation scheme for artisans.Every artisan will be given Rs 90,000 and they won’t have to repay it. Then wewere told that it is a financial assistance on which minimum 3 percent interestwill be charged,” Irfan said, adding that now the artisans are being informedthat the J&K Bank would charge entire 13 percent interest from them only asthe government “is not paying its 10 per cent interest share”.
“Many gullible artisanstook loan under this scheme, but from the day one the J&K Bank whichprovides loans at minimum rates to outside businesses, started charging 13percent and fixed monthly instalment of Rs 2200,” he said.
In 2013, then ChiefMinister Omar Abdullah inaugurated the much-hyped Dastkaar Scheme of J&KBank under which it was decided that all the artisans will be provided withfinancial assistance at subsidised rates in order to give fillip to thehandicraft sector.
The Dastkaar scheme underwhich ACCs are given entitles artisans to a loan of Rs 90,000 for encouragingthe revival and new startups in the handicraft sector.