Economy

Cleansing act of co-op societies begins in AP

Our Bureau Hyderabad | Updated on May 31, 2012

weaver

Ailing handloom sector to get Nabard help

The ailing handloom sector in the country is going to get a fillip. The Revival, Reform and Restructuring Package for Handloom Sector with an outlay of about Rs 3,900 crore, will take off in the next few weeks.

Under this scheme, Andhra Pradesh will complete the audit of handloom weaver societies in June that will pave way for cleansing of balance sheets, clearing the road for fresh flow of bank loans into the sector.

As of March 31, 2011, 22 states have given Letter of Commitment to sign the MoU with Nabard and the Union Government for implementing the scheme. Apart from Andhra Pradesh, Kerala and Uttarakhand too signed the agreement.

The share of the Union Government was initially put at Rs 3,137 crore and that of the State Governments at Rs 747 crore.

The package was intended to be implemented by December 31, 2012.

A special committee has been formed in Andhra Pradesh with the Principal Secretary (Industries) as its head.

“Auditors have been identified to take up the special audit. Nabard will give them training, who in turn will equip the auditors at district level. We expect the audit to be completed by June-end. Flow of funds would begin in the following month. Andhra Pradesh can hope for Rs 300 crore,” Mr P. Mohanaiah, Chief General Manager of Nabard (AP region), told Business Line.

There are about 590 weavers' societies that are eligible for the scheme in the State.

“Outstanding loans up to Rs 50,000 will be waived, making them eligible for bank loans again. We are also planning to form joint liability groups to help them get access to funds,” he said.

kurmanath@thehindu.co.in

Published on May 31, 2012

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like