The Telangana Government has deferred the launch of its much-anticipated youth empowerment initiative, the Rajiv Yuva Vikasam scheme, which was scheduled to begin on June 2 in conjunction with the Telangana Formation Day celebrations.

The first phase of the scheme aimed to provide financial assistance ranging from Rs.50, 000 to Rs.1 lakh to jobless youth across 119 constituencies.

However, the launch events were unexpectedly postponed, causing disappointment among thousands of prospective beneficiaries.

While there has been no official statement from the government explaining the delay, sources indicate that the decision may have been driven by the need to re-verify the beneficiary lists to ensure only eligible individuals receive the benefits. In several districts, the scrutiny process is reportedly still underway. Additionally, banks have cited issues such as incomplete documentation and lack of valid CIBIL scores among applicants, which has hindered the release of funds. There are also concerns about fiscal constraints for the government, with the Chief Minister having previously acknowledged tight state revenues to the state.

The scheme, announced by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, is designed to support youth from Scheduled Castes, Scheduled Tribes, Backward Classes, Minority communities as well as EWS through highly subsidised loans. The government is set to allocate Rs.6,250 crore for the scheme, with banks expected to contribute Rs.1,750 crore. The subsidy structure includes 100% subsidy on loans up to Rs.50,000, 90% on loans up to Rs.1 lakh, 80% on loans up to Rs.2 lakh, and 70% on loans up to Rs.4 lakh.

In the first phase, sanction letters for loans up to Rs.1 lakh were to be distributed.

The Telangana Cabinet, scheduled to meet on June 5 (Thursday), will discuss the future course of action for this scheme. Finance Minister Vikramarka is expected to present a detailed update to ensure the selection process is transparent and free from misuse. As per the original schedule, once the list of beneficiaries was finalized and sanction letters issued, entrepreneurship development training were set to be conducted from June 10 to 15, with handing over of cheques beginning June 16. The government had set an ambitious deadline for all supported ventures to become operational by Gandhi Jayanti (October 2).

Government claims the response has been overwhelming, with over 16.22 lakh applicants seeking support. The government intends to give this scheme to 5 lakh beneficiaries for this year, ensuring 80 per cent represent marginalised groups.