Telangana’s Rajiv Yuva Vikasam scheme flunks its very first test, beneficiaries’ list kept on hold

The scheme aims to support at least five lakh youth from Scheduled Castes (SC), Scheduled Tribes (ST), Backward Classes (BC), and minority communities to start self-employment ventures, fulfilling the Congress party’s commitment to address youth unemployment.

Published Jun 02, 2025 | 3:59 PMUpdated Jun 02, 2025 | 3:59 PM

Telangana Chief Minister A Revanth Reddy.

Synopsis: Telangana’s Rajiv Yuva Vikasam scheme, set for launch on 2 June, was postponed after ineligible applicants were found in the beneficiary list. CM Revanth Reddy halted the rollout, urging a strict vetting process. The scheme offers subsidised loans to empower youth from marginalised communities. The issue will be reviewed in the cabinet meeting on 5 June.

The Telangana government’s flagship programme, Rajiv Yuva Vikasam, scheduled to be launched on Monday, 2 June, Telangana Formation Day, has failed its very first test. The inclusion of ineligible applicants in the beneficiary list has prompted the state government to defer the scheme’s rollout to a later date.

The issue will be discussed in detail at the cabinet meeting scheduled for 5 June. Chief Minister A Revanth Reddy, on Sunday, 1 June, put the beneficiary list on hold.

The decision was prompted by feedback from ministers who recently visited various districts to review the government’s schemes.  On Sunday, the ministers met the chief minister informally and informed him of complaints they had received that ineligible applicants had been included in the eligibility lists, while genuine candidates were overlooked.

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The scheme

The Rajiv Yuva Vikasam Scheme is one of the six guarantees promised by the Congress party ahead of the 2023 Assembly elections to empower youth by leveraging their entrepreneurial capabilities.

The scheme aims to support at least five lakh youth from Scheduled Castes (SC), Scheduled Tribes (ST), Backward Classes (BC), and minority communities to start self-employment ventures, fulfilling the Congress party’s commitment to address youth unemployment.

Under the scheme, each beneficiary is eligible for a loan of up to ₹3 lakh, along with subsidies. The state has allocated ₹6,000 crore in the current budget for this initiative.

The subsidy structure is as follows:

  • For loans up to ₹1 lakh, an 80 percent subsidy is provided (the remaining 20 percent is covered by a bank loan or beneficiary contribution).
  • For loans between ₹1 lakh and ₹2 lakh, a 70 percent subsidy applies.
  • For loans up to ₹3 lakh, a subsidy of up to 60 percent is offered.

The scheme was opened for applications on 15 March, and closed on 5 April. Sanction letters for the first two categories were scheduled to be distributed to beneficiaries on 2 June.

During the review on Sunday, the chief minister stressed that no ineligible persons should benefit from the scheme, and no eligible youth should be excluded. He directed officials to rigorously vet the beneficiary list, implementing strict criteria to eliminate ineligible applicants and include genuine ones. “There must be close scrutiny in finalising the list of beneficiaries,” the chief minister stated.

Cabinet meeting

The cabinet meeting on 5 June, will also address other issues, including the potential impact of rains on normal life, crops, irrigation projects, drinking water supply, traffic movement in Hyderabad and other cities, and public health concerns.

Regarding the demands of state government employees, Deputy Chief Minister Mallu Bhatti Vikramarka provided an account of meetings held with them.

The chief minister asked him to address the employees’ grievances and prepare a roadmap for resolving their demands after holding further discussions.

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(Edited by Sumavarsha)

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