The Hindu : Andhra Pradesh News : Loan waiver to benefit 44 lakh people, says Rajasekhara Reddy

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Tuesday, Mar 18, 2008
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Andhra Pradesh

Andhra Pradesh

Loan waiver to benefit 44 lakh people, says Rajasekhara Reddy

Special Correspondent

HYDERABAD: The Andhra Pradesh Government’s decision to waive arrears of loans upto Rs. 1 lakh availed by SCs, STs, BCs, minorities, physically-challenged persons and women from their respective corporations will benefit an estimated 44 lakh people in the State.

Making a formal announcement in the Assembly on the Government’s earlier decision on loan waiver, Chief Minister Y. S. Rajasekhara Reddy said these sections would benefit to the tune of Rs 1,690 crore.

Asserting that this move would take Indira Gandhi’s ‘garibi hatao’ programme to its logical conclusion, Dr. Reddy said 50 per cent cost of the enterprise proposed by a beneficiary of these sections would be met by way of subsidy through these corporations, subject to a maximum of Rs. 30,000 as against Rs. 10,000 now, while loans would be arranged from banks to meet the other half of the unit cost. Projects costing above Rs 10 lakh would be addressed to Industries Department.

An additional sum Rs 50 crore would be provided to the corporations to enable to them to extend loans to more beneficiaries this year.

Their administrative costs for the year (Rs 41.47 crore) would be met by the Government to achieve this goal. Asked by Ch. Rajeshwara Rao (TDP) on the propriety of announcing a waiver of Rs 1,690.6 crore outside budget purview, the Chief Minister said there would be no cash outflow as the arrears would be written off through book adjustments.

Dr Reddy sought to know from the Telugu Desam members whether they were opposed to the big concessions to the weaker sections. Telugu Desam members remained silent.

Applause from Congress

Amidst applause from Congress members, he said his Government had implemented several schemes like Arogyasri which were not promised in the Congress manifesto.

In contrast, the TDP regime went back on its promises to implement prohibition, supply rice at subsidised rates and power to farmers at a concessional rate.

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