The Hindu Business Line : AP to enhance BPL annual income limit

Raising the bar
The State Government proposes to provide loan assistance of around Rs 3,000-crore covering three-lakh women SHGs consisting of 36-lakh members.
It has fixed a target of extending over Rs 10,000 crore in the next three years for improving the economic conditions of women SHGs.

Hyderabad, May 28

Aimed at covering increased number of poor under the poverty alleviation programmes, the Andhra Pradesh Government is seriously considering to enhance the annual income levels prescribed under the below poverty line (BPL) norms.

In an announcement here on Sunday, the Chief Minister's Office said with an ultimate objective of total eradication of poverty, the Government plans to bring all the poor and downstream into the jurisdiction of self-help groups (SHGs) and Indira Kranti Patham.

BPL limit

As a part of this, the Government is contemplating to enhance the annual income limit of BPL norm from the existing national specification of Rs 21,600 to Rs 60,000 in the State. "The initiative would surely help coverage of more and more number of rural poor under poverty alleviation programmes in the State," the CM's Office said.

The State Government proposes to provide loan assistance of around Rs 3,000-crore covering three-lakh women SHGs consisting of 36-lakh members during the current fiscal year. Last fiscal, the Government ensured provision of over Rs 2,001 crore of credit to 2.88-lakh women SHGs with around 34-lakh women members.

Further, the Government has fixed a target of extending over Rs 10,000 crore in the next three years for improving the economic conditions of women SHGs under `Pavala Vaddi' initiative through Indira Kranti Patham.

Expressing serious concern over the exploitation of people by the micro finance institutions (MFIs) in the rural areas, the Chief Minister, Dr Y.S. Rajasekhara Reddy, called upon the bankers to significantly increase lending to SHGs and also discourage lending to MFIs.

According to the Chief Minister, the MFIs obtained loans from banks at around seven per cent interest and charging 24-30 per cent flat rates on loans to poor in the rural areas.

Fresh finance

Dr Reddy stressed on the need to help poor borrowers across the State in repaying the loans borrowed from the MFIs by arranging fresh finance from the banks.

The Chief Minister opined that the increased bank credit to the rural poor would help arrest their migration to urban areas for livelihood.

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