HYDERABAD: The Rajiv Yuva Vikasam scheme, launched by the Telangana government to promote self-employment among youth through subsidised loans, has witnessed an overwhelming response, with applications surpassing available units by more than four times in several categories.
Despite the government’s announcement to disburse ₹6,000 crore in subsidy-linked loans under the scheme, only 4,16,500 units have been sanctioned statewide — 3,500 units per constituency. However, by the application deadline of 14 April, over 16 lakh applications had been submitted.
Welfare departments across the state are grappling with the disparity. The SC Welfare Department, allocated 1.44 lakh units, received more than 3.92 lakh applications. The BC Welfare Department saw an even larger surge, reportedly receiving over 9 lakh applications. Similar trends were reported across ST, Minority, and EBC categories, with applications outnumbering available units by three to four times.
One category dominates the interest: loans worth ₹4 lakh. While the scheme offered loans in five slabs — ₹50,000, ₹1 lakh, ₹2 lakh, ₹3 lakh, and ₹4 lakh — nearly 75% of the total applications were for the ₹4 lakh units alone. In Medchal-Malkajgiri district, for instance, of the 38,000 applications received, a staggering 35,000 were for the highest-value slab. The remaining four categories combined attracted fewer than 3,000 applications, a pattern consistent across other districts.
This lopsided preference has left officials facing difficult decisions. With limited unit allocations and a deluge of requests, the selection process has become increasingly complex. The government has outlined a detailed set of criteria for prioritising beneficiaries, including reservations: 25% for women, 5% for persons with disabilities, and proportional allocations for SC, ST, BC, Minority, EBC, and EWS groups at the mandal and district levels.
Additional preference is to be given to single and widowed women, Telangana movement participants, families of SC categorisation martyrs, first-time applicants, and those not previously aided by self-employment schemes.
With demand far outstripping supply, welfare officials are reportedly scrambling to balance eligibility, reservation, and need-based considerations while avoiding political and administrative backlash.
