The Hindu Business Line : AP announces loan waiver

Hyderabad, March 17 The Chief Minister, Dr Y.S. Rajasekhara Reddy, today announced another major loan waiver scheme of Rs 1,690 crore that covers women, minorities, disabled persons, backward and scheduled castes.

In a statement in the State Legislative Assembly, Dr Reddy outlined how some of these sections of society have been overburdened requiring special focus and also Government support through a loan waiver scheme.

The loan waiver scheme announced today is aimed at covering about 43,84,682 beneficiaries.

Mr Reddy said this was being done with a view to giving relief to the loanees of corporations of all the weaker sections, not exceeding Rs 1 lakh per each loanee.

The proposed write off is part of a positive approach consisting of not only measures to relieve the defaulters of burdensome loan liabilities but also to reorient the respective welfare corporations to cater to more beneficiaries in future. Consequently, all the welfare corporations will be made to maintain their assistance levels by supporting them with the additional allocation of Rs 50 crore during 2008-09. However, corporations will pass on their assistance only in the form of subsidy.

Thus 50 per cent of the unit cost not exceeding Rs 30,000 will be the subsidy extended to each of the beneficiaries. This is against the existing subsidy of Rs 10,000 per beneficiary. The remaining part of the project cost will be arranged through various financial institutions.

The Weaker Sections Finance Corporation will concentrate on planning, credit linkages, grounding of schemes, hand holding assistance, monitoring and in recovery of loans on time.

The Government has formulated guidelines for 2008-09. It is proposed to extend ‘Pavala Vaddi’ scheme to other corporations.

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