YSR assures SC/ST entrepreneurs collateral security for loans

Subscribe to Oneindia News

Hyderabad, Feb 23 (UNI) Andhra Pradesh Chief Minister Y S Rajasekhara Reddy today announced that his Government would stand guarantee for loans advanced by banks to Scheduled Caste and Scheduled Tribe entrepreneurs.

Reacting to the complaints of entrepreneurs at a workshop for SC/ST entrepreneurs here that banks were not coming forward to advance loans for want of collateral security, the Chief Minister said ''my Government will stand guarantee through the Andhra Pradesh State Finance Corporation for loans advanced to SC/ST entrepreneurs.

I will also raise the issue at the State-level bankers meet.'' Dr Reddy appealed to the entrepreneurs to take a cue from women self-help groups, to whom banks had provided bank linkages for Rs 7,000 crore without collateral security due to their prompt repayment of loans.

Asking officials and Ministers concerned to facilitate setting up of 5,000 new units by SC/STs within a year, he said he would hold review meetings every month with them to know the status and sort out problems, if any.

Major Industries Minister J Geetha Reddy highlighted the new GO passed by the Government, enhancing investment subsidy on fixed capital to 35 per cent as against 15 per cent for general entrepreneurs and providing five per cent additional subsidy for women and additional five per cent to ST entrepreneurs.

The Government would reimburse the power cost at Re one per unit for five years as against 75 paise for general entrepreneurs and 50 per cent of the tax paid in a year would be ploughed back as grant for five years from the date of commercial production, she said, adding that 33.5 per cent of the land cost would also be reimbursed.

Besides, an interest subsidy of five per cent over and above the prime lending rate would be provided both on term loan and working capital with a maximum limit of Rs five lakh per year for five years.

In the industrial estates developed by the State Industrial Infrastructure Corporation, 16.2 per cent of the plots were reserved for SC entrepreneurs and six per cent for ST entrepreneurs, she added.

Small Scale Industries Minister G Surya Rao said as many as 8,200 SC/ST entrepreneurs had started new units with an investment of Rs 2,700 crore in the last three years.

UNI SM VA RL DS1535

Please Wait while comments are loading...