The Hindu Business Line : Govt restores interest subsidy for weavers’ societies

Coimbatore, March 20 The interest subsidy on loans granted to the handloom weavers co-operative societies in the State, which was discontinued since 2002, has been revived by the State Government.

Accordingly, the State Government has decided to extend four per cent interest subsidy on the loans, and this will effectively reduce the interest rate from 12 per cent to eight per cent from the coming financial year. This has been proposed in the budget presented in the Assembly on Thursday.

The State Government would incur an annual expenditure of Rs 12 crore on the interest subsidy.

The budget has also announced waiver of Rs 15 crore loans taken by the weavers from the HUDCO under the house-cum-workshed scheme.

The State Government has also decided to continue the free distribution of sarees and dhotis for the poor for the coming year too, by making a budgetary provision of Rs 256 crore. This scheme will also enable providing regular jobs to the handloom weavers.

Health insurance

The State Government has decided to bear the share of weavers’ premium contribution of Rs 50 each under the Centre-assisted handloom weavers health insurance scheme (for which premium was shared by the State/Centre and the weavers). This move is expected to benefit three lakh weavers enrolled under the scheme.

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