Kerala - Alappuzha   

Thomas Isaac flays Centre's policies

Staff Reporter

`Discuss Micro-Finance Regulation Act'

ALAPPUZHA: Continuing his outburst against the financial policies of the Congress-led United Progressive Alliance at the Centre, Finance Minister T.M. Thomas Isaac has said that the State would not accept the proposed Micro Finance Regulation Act in its present form since it undermined the very essence of Kerala's Kudumbashree Neighbourhood Groups.

Mr. Isaac said on Monday that the proposed Act had to be thoroughly discussed before being passed.

Speaking at a function organised to inaugurate a Kudumbashree meeting and to distribute loans to its members at the Aryad Panchayat Community Hall, near Mararikulam here, Dr. Isaac said the proposed Act could not be accepted in its present form because it would lead to the imposing of the World Bank's rules for Self-Help Groups (SHG) on Kudumbashrees.

"Kudumbashrees are different from SHGs because they are neighbourhood gatherings supported by the panchayat and the State Government. The Kerala system is very different from SHGs being run in other systems and from those for which the World Bank has its own set of rules," he said.

The Minister said that a meeting of all panchayats and Kudumbashrees would be convened at Aryad shortly to thrash out the issue and to form a set of suggestions to be forwarded to the Centre on changes to be brought in the proposed Micro-Finance Regulation Act.

Addressing reporters during a visit to the site of the proposed Chethi Fishing Harbour at Mararikulam later on Monday, Mr. Isaac said the technical report for the project had been completed. The first phase of work on the harbour, estimated to cost Rs.5 crore, would begin shortly, he said. The harbour, which is to have all modern facilities and to function throughout the year, will be completed in two years.

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