AP CM announces Rs 1690 cr waiver for 43.84 lakh beneficiaries

Hyderabad, Mar 17 (UNI) In a major relief to over 43.84 lakh loanees of all weaker section 'corporations', formed in pursuance of late Prime Minister Indira Gandhi's ''Garibi Hatao'', Andhra Pradesh Chief Minister Y S Rajasekhara Reddy today announced writing off of loans not exceeding Rs one lakh per loanee.

Making a statement in the State Assembly, he said this would benefit 43,84,682 loanees belonging to the Scheduled Castes, Scheduled Tribes, Backward Classes, minorities, physically handicapped and women involving an amount of Rs 1,690.60 crore.

Announcing that the Corporations would henceforth provide 50 per cent of the unit cost not exceeding Rs 30,000 as subsidy as against the existing limit of Rs 10,000 per beneficiary, he said the Corporations would advance loans at a meagre interest rate of three per cent to make it easier for the loanees to repay.

In view of the waiver, the Government would meet the Corporations' administrative costs by making a budgetary allocation of Rs 41.47 crore for the purpose during the year, Dr Reddy said.

Limiting the scale of finance for units up to Rs ten lakh, he said projects costing more than Rs ten lakh would be assisted by specialised agencies under the Industries and Commerce department.

The Central credit guarantee scheme would be leveraged to extend the much-needed collateral security to deserving entrepreneurs of weaker sections, he added.

The write-off was part of the positive approach not only to relieve defaulters of burdensome liabilities, but also re-orient the respective welfare corporations to cater to more beneficiaries, he said.

UNI SM VA GD SK KN1630