NEW DELHI: The scheme to provide interest subvention to the rural homeless poor has failed to make a mark with weak response to loans and poor utilisation of funds, prompting the government to seek its revival by roping in two financial institutions with strong rural network.
The Rural Housing Interest Subsidy Scheme has managed to spend barely around Rs 10 crore till this week, out of around Rs 50 crore released mid-2019, with roughly 9,000 beneficiaries. It marks a setback for government expectations, evident from the fact that the rural development ministry had earmarked Rs 100 crore for 2020-21. Sources said the current year allocation is redundant now given the abysmal expenditure.