The Hindu : Andhra Pradesh News : Collateral security rule relaxed for SCs, STs in A.P.

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Sunday, Feb 24, 2008
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Andhra Pradesh

Andhra Pradesh

Collateral security rule relaxed for SCs, STs in A.P.

Special Correspondent

YSR promises plots for SCs, STs in industrial estates and SEZs
State to consider lowering interest rate to 3 p.c. on these loans

HYDERABAD: The Andhra Pradesh State Financial Corporation (APSFC) will hereafter offer loans up to Rs. 5 crore without insisting on collateral security to entrepreneurs of Scheduled Castes and Scheduled Tribes.

The government will provide collateral security to the APSFC on their behalf and also consider lowering the interest rate to 3 per cent on these loans. These arrangements have been made in view of the unhelpful attitude of the commercial banks towards the SCs, STs.

Addressing a state conference of prospective SC, ST entrepreneurs organised by the government here on Saturday, Chief Minister Y. S. Rajasekhara Reddy said APSFC loans could be used as fixed capital or working capital. Using APSFC loans, they could also purchase buses for operation by the RTC on hire. He promised to liberally allot plots to SCs, STs in industrial estates and SEZs.

Dr. Reddy asked the SC/ST investors to prove their mettle that they were in no way less than others in industries too. He said it was his strong desire to see them grow like Reliance Ambani, Tatas and Birlas. “It’s a challenge to you and the government” to prove that the industrial policy, specially adopted by him for SCs, STs with 35 per cent subsidy on investment and with many other incentives as nowhere else in the country, would do wonders. He gave officials a target of making 5,000 SC and ST candidates industrialists by February next, covering at least 250 in each district. Te prospective entrepreneurs who gathered from different districts, shouted slogans against the claim made during a presentation by A.L. Nageswara Rao, convener, State-Level Banker’ Committee, that banks were extending security-free loans. Tribal Welfare Minister D. S. Redya Naik flayed the TDP for falsely saying that SCs, STs were allotted meagre amounts.

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