RTI data reveals Rs 317 crore Dalit Bandhu funds unutilized in Telangana

Hyderabad: Government data indicate that a substantial portion of the Dalit Bandhu scheme funds in Telangana remains unspent. Of the Rs 3,971.64 crore allocated, over Rs 317.36 crore has not been received by the beneficiaries, according to the Telangana Scheduled Castes Cooperative Development Corporation Limited. The funds, aimed at helping 9,177 people from marginalized groups start businesses or purchase income generating assets, have been delayed, indicating slow implementation or administrative bottlenecks, said the RTI activist who filed the request.

The query was filed by  Kareem Ansari, a Hyderabad-based RTI activist from Yugantar, a Hyderabad-based NGO that facilitates RTI filings through its exclusive website, Yourti.in. The RTI reply shows that Rs 3,971.642 crore was allocated for 38,232 potential beneficiaries under two implementation modes. However, 9,177 beneficiaries have not yet received benefits, leaving Rs 317.36 crore unutilized. The data covers both the target mode, which applies district-wide, and the saturation mode, which focuses on selected areas.

The Dalit Bandhu scheme provides one-time capital assistance of Rs 10 lakh per Scheduled Caste family as a grant for establishing income-generating activities. The scheme operates in two main modes, Target Mode, which distributes funds across all districts to achieve broad coverage, and Saturation Mode, which focuses intensively on selected areas to ensure that all eligible families receive benefits. The data reveal that while Saturation Mode has yielded substantial results in focused areas, Target Mode has faced challenges converting allocations into actual beneficiary coverage across districts.

“Serious concerns have emerged regarding the transparency and effectiveness of the Dalit Bandhu Scheme in Telangana following the recent RTI reply from the Scheduled Castes Cooperative Development Corporation Ltd. While authorities tout substantial allocation of over Rs 3,971 crore, the official response falls short of addressing ground realities and accountability”, said A Paramesh, who filed an RTI through yourti.in.

RTI data highlights gaps in implementation

Analysis of Dalit Bandhu Scheme data highlights different outcomes between Target and Saturation Modes. In Target Mode, Rs 1,195.53 crore was allocated across 33 districts for 11,837 potential beneficiaries. Of these, 11,402 received support, leaving 435 beneficiaries and Rs 10.07 crore unutilized.

The data also revealed sharp disparities in how the program has been rolled out across the state. In Hyderabad, the capital, the scheme’s implementation appears more advanced, while several rural districts have lagged. Hyderabad leads with an allocation of Rs 149.88 crore, covering 1,484 beneficiaries and leaving only two pending, with Rs 2.46 lakh unutilized. Medchal Malakjgiri follows with Rs 56.86 crore for 563 beneficiaries, 35 pending, and Rs 40.46 lakh unutilized. Nizamabad received Rs 55.55 crore for 550 beneficiaries, with two pending and Rs 1.57 lakh unutilized. Nalgonda received Rs 52.21 crore for 517 beneficiaries, with six pending cases and Rs 22.31 lakh unutilized.

Speaking to HyderabadMail A Paramesh associated with Yourti.in says, “Compared to urban areas dalit population is more in rural areas in telangana. The dalit in rural areas needed this kind of scheme to gain access to agricultural machinery like tractors and other income-generating assets,” he said.

He pointed out the apparent imbalance in fund allocation “In contrast, Hyderabad, being a metropolitan area, has received high allocation and utilization under the scheme. The government should focus more on Dalits from rural areas who are among the poorest, rather than those living in urban areas.”

While several districts, including Karimnagar with 210 beneficiaries receiving Rs 21.21 crore, Mulugu with 120 claimants gaining Rs 12.12 crore, Narayanpet with 183 claimants receiving Rs 18.48 crore, Nirmal with 261 individuals availing Rs 26.36 crore, Ranga Reddy with 697 aid recipients getting Rs 70.39 crore, Wanaparthy with 199 beneficiaries receiving Rs 20.09 crore, and Warangal with 303 individuals receiving Rs 30.60 crore, fared well, with the allocation reaching all the beneficiaries.

Saturation Mode targets intense implementation in specific areas and shows very different results. This approach accounts for the majority of the scheme's budget. It allocates Rs 2,776.10 crore to six areas, aiming to help 26,395 potential beneficiaries. The physical achievement is much higher, reaching 26,395 beneficiaries. However, it also has the largest unutilized funds of Rs 307.28 crore, with 8,742 beneficiaries still waiting for their amount. The Huzurabad area stands out with 17,692 beneficiaries. It received Rs 1,786.89 crore, but 315 beneficiaries still haven't received their share, leaving Rs 281.19 crore unused. In Khammam's Chinthakani area, 3,462 individuals benefit from a grant of Rs 349.66 crore.  However, 1,360 beneficiaries are still waiting, leaving Rs 23.42 crore unutilized.

Combining both modes, the scheme's grand total stands at an allocation of Rs 3,971.64 crore for 38,232 potential beneficiaries. The total sanctioned amount is Rs 3,860.95 crore, reaching 38,232 beneficiaries, with overall unutilized funds of Rs 317.36 crore yet to be utilized by 9,177 beneficiaries.

The second annexure of the RTI reply details recent allocations of Rs 773.43 crore, with 474 beneficiaries receiving Rs 23.56 crore. Yadadri Bhuvanagiri district made notable progress with 254 beneficiaries receiving Rs 7.62 crore, while Medchal district reported 35 beneficiaries receiving Rs 3.32 crore.

Experts demand transparency and rural focus

The RTI response confirms that no funds have been diverted, and the scheme has not been renamed, restructured, or merged with other initiatives. The corporation referred further queries to district societies. “The department’s frequent referral to district societies for further details raises questions about the completeness and accessibility of the information provided,” A Paramesh told HyderabadMail.

Further A Paramesh said, “Persistent gaps remain, with the reply refusing to provide granular data and sidestepping issues such as district-level delays, eligibility disputes, and on-the-ground execution. Critics argue that the scheme, despite vast monetary commitments, struggles to deliver meaningful change for Dalit communities unless backed by stronger transparency, targeted disbursement, and thorough disclosure of beneficiary outcomes”.