Hyderabad, Telangana | Updated: July 4, 2025 – Promised as a lifeline for lakhs of unemployed youth, the Telangana government’s Rajiv Yuva Vikasam scheme has descended into a quagmire of uncertainty and broken promises. Three months after applications closed, scrutiny is officially complete, but the crucial stage of loan disbursement remains stalled, leaving hundreds of thousands of desperate applicants wandering government offices seeking answers that aren’t coming.
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Key Facts: Scheme Status & Delays
- Applications Closed: Portal shut on April 14, 2025. No new applications accepted.
- Scrutiny “Complete”: Over 16 lakh applications processed.
- Massive Rejections: Roughly 6.6 lakh applicants rejected – nearly 45% – primarily due to CIBIL scores or eligibility issues.
- Minimal Sanctions: Only about 1 lakh sanction letters issued, exclusively for the smallest loans (up to ₹1 lakh).
- Loan Disbursement Frozen: No significant disbursement of funds has occurred. Larger loans (above ₹1 lakh) are entirely on hold.
- Scheme Paused: Government confirms formal pause until after upcoming local body elections.
Where is the Loan Money? The Roots of the Delay
The much-touted scheme, aimed at providing self-employment loans, is paralyzed by a confluence of critical problems:
- Severe State Finances: Telangana is grappling with a massive monthly deficit of approximately ₹9,000 crore. Funding a scheme of this scale (potentially requiring thousands of crores) is currently unsustainable, government insiders indicate.
- Bank Reluctance & Scrutiny: Banks are hesitant to disburse large volumes of loans, especially above ₹1 lakh, citing strict CIBIL score requirements and risk assessment. This creates a major bottleneck after government scrutiny.
- Political Interference & Favoritism: Widespread, credible allegations persist that local Congress party leaders and MLAs are pressuring officials to prioritize applications from party workers and supporters, sidelining others.
- Election Calculations: With local body elections imminent, the government fears backlash if only a small fraction of applicants receive benefits. Pausing the scheme avoids potential unrest but leaves applicants in limbo.
- Post-Election Plan (Raising Concerns): The government states beneficiary selection for remaining loans will be handled by Gram Sabhas (village councils) after elections. This raises serious fears of intensified political manipulation at the local level.
Applicants in Agony: Wandering Offices, Facing Betrayal
The human cost of the delay is stark:
- Endless Government Office Rounds: Frustrated applicants are making daily rounds to district offices, banks, and Tahsildar offices, only to be met with vague answers or instructions to “check the portal” or “wait for orders.”
- Broken Promises: The initial promise of scheme launch by June 2nd lies shattered. The repeated delays have fuelled intense anger and a sense of betrayal among the youth who invested time and hope in the application process.
- “Youth” Scheme Includes 60-Year-Olds?: Adding insult to injury, the scheme’s controversial upper age limit of 60 years, far exceeding typical definitions of “youth,” has caused resentment among younger applicants who feel marginalized.
- Mounting Protests: Youth groups and rejected applicants have held protests across districts, demanding transparency, faster disbursement, and an end to alleged favoritism. Public sentiment is overwhelmingly negative.
What Happens Next? More Uncertainty
There is no official timeline for when the scheme will be fully revived or when loan disbursements for the vast majority of approved applicants will begin. The only certainty is:
- No activity before local elections.
- Gram Sabhas will play a key, and potentially contentious, role in future beneficiary selection.
- Bank approval remains a significant hurdle for any loan exceeding ₹1 lakh.
- Nearly 15 lakh applicants remain in agonizing suspense, their plans for self-employment indefinitely on hold.
How to Check Rajiv Yuva Vikasam Scheme Application Status
With uncertainty looming, applicants are eager to know their status. The government has provided a way to check, although the portal is no longer accepting new submissions.
- Visit the Official Portal: Applicants can check their status on the official Telangana Online Beneficiary Management and Monitoring System (OBMMS) website: https://tgobmms.cgg.gov.in/.
- Use Your Application Number: You will need your application reference number to log in and view the current status of your request.
- Helpline for Assistance: For further queries, applicants can contact the official helpline.
- Phone: 040-23120334
- Email: helpdesk.obms@cgg.gov.in
The Rajiv Yuva Vikasam scheme, envisioned as a path to empowerment, has instead become a symbol of bureaucratic inertia, political maneuvering, and dashed hopes. With the state’s finances strained, elections looming, and no clear resolution path, the youth of Telangana face a prolonged and uncertain wait, their frustration growing with each passing day.