Helping small entrepreneurs make a big impact Premium

In 1993, fresh out of Vinukonda Degree College in Guntur district of present-day Andhra Pradesh, armed with a commerce degree, Konga Srinivas Rao arrived in Hyderabad determined to build something of his own. But dreams, he soon realised, don’t take shape overnight. His first break came at his uncle’s television assembling unit in Koti area. He had dived into a field he knew nothing about, and yet, instead of shying away, he rolled up his sleeves and learnt the art of manufacturing black-and-white TV sets, from the ground up.

In three years, he had mastered every aspect of the process — assembly, circuit tubes and complete TV production. “Every day, we used to manufacture close to 200 TV sets which were very much in demand then,” recalls Rao, now 52.

But just when things seemed steady, a roadblock emerged: the unreliable supply of 18-volt step-down transformers, a key component sourced from Delhi. Production delays mounted, losses piled up and frustration grew. His uncle, seeing both the problem and Rao’s growing expertise, made a suggestion that would change his life: “Why don’t you manufacture the transformers yourself?”

The idea was daunting — he had just gotten married, the resources were limited and competition was fierce. But he decided to take the plunge anyway. In 1998, he, along with his graduate-wife Rama Devi, launched his own unit — R.S. Enterprises — from a small rented room in Hyderabad that the couple shared.

What began as a modest setup is now producing 70,000 transformers annually. “I diligently catered to the needs of manufacturers and ensured highest quality. This helped me make my work known to the companies,” Rao says proudly.

Given his thriving business, he managed to buy a house in Boduppal area of the city in 2011. “It is a two-storey building. The ground floor is my manufacturing unit and the upper floor is my residence,” he adds.

In 2018, with a loan under the Prime Minister’s Employment Generation Programme (PMEGP) — a Central scheme aimed at boosting entrepreneurship and job creation by providing financial assistance for micro-businesses — and unexpected support from the postal department, Rao scaled his business beyond what he had imagined.

“I applied for the loan and was sanctioned ₹9 lakh. Of that, ₹7 lakh went into purchasing machinery and the rest was reserved for working capital. I got subsidy of ₹2 lakh too,” he asserts.

What truly surprised him was the role of the postal department in securing the subsidy. He says he recently learned that the department has been carrying out third-party verification of units, submitting reports that enabled banks and the government to release loans and subsidies, ensuring a smooth process that spared him the usual bureaucratic hurdles.

He is not alone in benefiting from these expedited services. Hundreds of micro and small entrepreneurs have also found relief. The Telangana Circle of the Department of Posts has played a crucial role in facilitating access to PMEGP benefits under the Khadi and Village Industries Commission (KVIC), fostering self-employment and business growth.

To ensure transparency and prevent misuse, the Central government entrusted the postal department with the physical verification of PMEGP units nationwide from August 20, 2024.

Tales of success

From jute bags to brick kilns, from tailoring shops to digital service centers, the stories of small entrepreneurs finding their footing under PMEGP echo across Telangana.

Take the example of B. Srujana, who set up a jute bag manufacturing unit in Hyderabad in 2019. To support her business, she availed a ₹25-lakh loan under the scheme. Business was promising from the start, but she had been waiting for the subsidy for women entrepreneurs.

“One day last year, postal department staff landed up for a surprise verification. They clicked pictures, spoke to my workers and examined the entire manufacturing process. Their quick submission of the report has given me confidence that I would finally receive the much-needed subsidy,” she says.

In Utkoor, a backward village of Luxettipet mandal in Mancherial district, A. Suresh, who runs Laxmi Ganapathi Bricks, was taken aback when postal officials showed up at his unit. “The process was smooth and they were supportive. I never imagined government staff could be this helpful to small business owners,” he admits.

Fifty kilometers away, B. Praveen Kumar, who runs a MeeSeva centre in Tandur town of Mancherial, also felt the weight of bureaucracy lift off his shoulders when postal staff inspected his premises and submitted the verification report without him having to chase officials or banks. Now, I am on the verge of securing my PMEGP loan and subsidy,” he says, his voice choked with relief.

For 36-year-old Rohini, a tailor from Adilabad district, the COVID-19 pandemic nearly crushed her dreams just as she was starting out. Undeterred, she applied for a PMEGP loan and pushed forward. “The journey wasn’t easy, but today, my business is thriving. I am now able to employ four people. The postal department’s verification process was smooth and I am hopeful of securing the subsidy soon,” she says.

Chityala Naresh, who runs a hair salon in Kalamadugu of Jannaram mandal in Nirmal district, also secured a PMEGP loan. Thanks to the postal department’s efficient verification, his subsidy is now within reach.

Structured training

Chief Post Master General of Telangana Postal Circle, P. Vidyasagar Reddy says that the verification process for PMEGP units in the State began after a structured training session last October.

B. Praveen Kumar, who runs a MeeSeva centre in Tandur town of Mancherial district.
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SPECIAL ARRANGEMENT

“A total of 85 postal staff were appointed as enumerators to conduct physical verification of 3,492 PMEGP units across 33 districts of Telangana. They started their work soon after the training and have already completed verification of 505 units,” he says, adding that the verification process is ongoing.

The PMEGP units in Telangana span a wide range of businesses — paper plate and plastic manufacturers, cement and fly-ash brick makers, barber shops, beauty parlours, detergent manufacturing units, agro-industries, rice and flour mills, tent houses, photo studios, photocopy shops, internet cafés, book stalls, cloth stores, wood-cutting and carving centres and vehicle service stations, among others.

The verification process starts with the designated enumerators logging into a KVIC-provided mobile application, where they access details of the assigned PMEGP unit. Their first stop is the bank concerned, where they collect loan details and obtain a bank verification form.

Next, they visit the PMEGP unit to confirm its physical location, assess its operational status, and record the number of employees. Geo-tagged photographs of the unit are uploaded as proof of verification.

Narsimhulu, Public Relations Inspector at Kukatpally post office.
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SPECIAL ARRANGEMENT

To ensure transparency, the enumerator also collects a self-declaration from the beneficiary in the form of Annexure-2, confirming that the verification was conducted fairly. This document, before being uploaded, is authenticated via an OTP sent to the beneficiary’s registered mobile number.

To ensure the accuracy and integrity of the data, quality-checking teams have been established at both the regional and circle levels. These teams meticulously review the data and photographs uploaded by enumerators before forwarding them to KVIC for final processing. Once the verification is confirmed, KVIC issues a formal certificate to the bank, enabling the release of the subsidy, which is then credited to the beneficiary’s loan account.

R.Vikram, Inspector at Bellampalli post office, says he has been conducting unit verifications for the PMEGP scheme in the Adilabad division. “Rural manufacturing unit owners are eligible for a 20-30% loan subsidy, subject to verification by the postal department,” he points out.

Venkateshwar Reddy, Postal Assistant in Hyderabad, outlines his role: “As part of my duties, I visit multiple banks to collect essential beneficiary information, including customer account numbers and loan details.”

Venkateshwar Reddy, Postal Assistant in Hyderabad.
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SPECIAL ARRANGEMENT

After completing bank-related procedures, he proceeds to physically verify the units, inspecting the premises, evaluating the products, and documenting the findings in the KVIC mobile application. “Beneficiaries have expressed gratitude for the seamless verification process by the Department of Posts, and they have willingly submitted self-declaration forms, acknowledging the fair and transparency process,” he adds, reflecting on the positive impact.

His sentiments are echoed by those whose businesses were verified. Rao praises the postal department for carrying out thorough verification, documenting every aspect of his unit through pictures and videos. “Their support and efficiency have been invaluable. We are deeply grateful to both PMEGP and the postal department for assistance in building and sustaining our enterprise,” he says.

Narsimhulu, Public Relations Inspector at Kukatpally post office, notes most banks have been supportive throughout the PMEGP verification process, although a few challenges arose due to bank mergers and unavailability of older records.

Kareem, manager at Union Bank of India, JNTU branch in Hyderabad, highlights the importance of cooperation between the government, banks, and the postal department. “Their excellent support has made this process more effective,” he says.

R.Vikram, Inspector at Bellampalli post office.
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SPECIAL ARRANGEMENT

During their field visits, postal staff also take the opportunity to introduce customers to India Post’s range of products. “Earlier, people used to question the credibility of verification officials, but now, when we identify ourselves as representatives of the Department of Posts, they respond with trust and enthusiasm,” a staff member remarks.

Overall, the feedback from beneficiaries has been overwhelmingly positive. Across Hyderabad, Nizamabad, Kamareddy, Adilabad, and Kumaram Bheem Asifabad, both beneficiaries and enumerators have shared encouraging responses. Many beneficiaries have expressed satisfaction after the successful completion of the physical verification, which will enable the release of subsidy to help close their bank loans.

The Chief Post Master General notes that the Union Budget for 2025-26 has emphasised the transformation of India Post into a key enabler of the rural economy. “With a network of 6,268 post offices and 15,190 staff, mostly in rural areas of Telangana, we are committed to supporting new entrepreneurs, women-led businesses, self-help groups, and MSMEs. Our goal is to help them access government subsidies, successfully establish businesses, generate employment and increase incomes,” he signs off.