The CM ST Entrepreneurship and Innovation Scheme, launched to promote tribal entrepreneurship in Telangana, has witnessed a sharp decline in implementation over the past two years. Despite ambitious targets, only a fraction of intended beneficiaries received support, raising concerns among stakeholders
Published Date – 31 May 2026, 07:52 PM
Hyderabad: When the Chief Minister ST Entrepreneurship and Innovation Scheme was launched in 2017, it offered a platform for tribal youth to transform their innovative ideas into successful businesses. Several beneficiaries made effective use of the support and assistance provided and emerged as entrepreneurs, creating employment opportunities for many within their communities and beyond.
One such success story was that of Homesh Dharavath from Mahabubabad, who established an ambulance service unit under the scheme and went on to provide employment to 20 tribal youth. Other beneficiaries set up food and beverage outlets, cement concrete manufacturing units and various small-scale enterprises.
Much like the Dalit Bandhu scheme enabled Scheduled Caste youth to become entrepreneurs, the CM ST Entrepreneurship and Innovation Scheme was designed to provide a similar opportunity for Scheduled Tribe youth. However, stakeholders say the pace of implementation has slowed considerably since the Congress government assumed office, leaving many aspiring tribal entrepreneurs disappointed.
The scheme, implemented by the Tribal Welfare Department, was conceived to promote tribal entrepreneurship through incubation support, knowledge linkages and capacity-building initiatives on the lines of premier institutions such as the Indian School of Business. Participants are trained to convert their ideas into viable business plans.
After completing the capacity-building programme, beneficiaries are required to prepare a Detailed Project Report (DPR) and submit it to banks for financial assistance. Once the DPR is approved, the Telangana Scheduled Tribes Cooperative Finance Corporation (TRICOR) releases the subsidy component, which can account for nearly 45 per cent of the project cost in certain cases. The remaining amount is arranged through loans from banks and financial institutions.
Between 2018-19 and 2022-23, around 110 beneficiaries availed support under the scheme and established enterprises. However, the implementation record over the last two-and-a-half years has come under scrutiny. In 2024-25, the Tribal Welfare Department had set a target of supporting 50 beneficiaries under the scheme but managed to assist only six. Similarly, during 2025-26, against a target of 100 beneficiaries, support was extended to just 17 individuals.
The low achievement levels have raised questions about the government’s commitment to promoting tribal entrepreneurship through the initiative.
For the current financial year, the government has proposed an allocation of Rs 50 crore under the scheme with the objective of supporting 100 ST beneficiaries. However, given the sluggish implementation witnessed over the previous two financial years, achieving the target could prove to be a significant challenge for the department.
