The Hindu : Andhra Pradesh / Hyderabad News : State’s annual credit plan fixed at Rs. 55,500 crore

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Tuesday, Jul 14, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

State’s annual credit plan fixed at Rs. 55,500 crore

Plan to create corpus fund for ‘Pavala Vaddi’ beneficiaries

PHOTO: K. RAMESH BABU

Talking money: Chief Minister Y.S. Rajasekhara Reddy releasing the State Credit Plan 2009-10 in Hyderabad on Monday. —

HYDERABAD: The State government is contemplating creating an exclusive corpus fund to ensure timely repayment of instalments to banks on the loans obtained by beneficiaries availing the 3 per cent interest rate under Pavala Vaddi scheme.

Chief Minister Y.S. Rajasekhara Reddy dropped hints to this effect during the State Level Bankers’ Committee meeting here on Monday when he said the government was mulling over alternative mode for total repayment of loans granted by banks in the event of death / incapacitation of beneficiaries. At the same time, efforts were underway to inculcate financial discipline among the beneficiaries by educating them on the adverse impact if they did not repay their loans in time.

Dr. Reddy formally released the State’s annual credit plan with a total outlay of Rs. 55,500 crore that included Rs. 23,500 crore for crop loans, Rs. 9,000 crore for term loans, Rs. 8,000 crore non-farm sector and Rs. 15,000 crore of other priority sector loans. This was in comparison with the plan size of Rs. 47,000 crore and disbursement of Rs. 43,803 crore during 2008-09. Stating that the debt relief scheme announced by the Centre was a one time measure, he exhorted bankers and officials concerned to educate farmers about utilising the crop insurance scheme that was being implemented with village as a unit in the State.

“Farmers should be made aware that the vicious cycle of debt would repeat if they do not pay insurance premium on their crops,” he said.

The Chief Minister, who expressed dissatisfaction over banks’ not achieving targets of housing loans, explained to them the cooperative farming being contemplated in the State.

Earlier, SLBC president R.S. Reddy, who welcomed the participants, said that banks could not achieve the target in loans disbursal because of the debt waiver scheme announced by the Centre. He stressed the need for weeding out fake pattadar passbooks so that the benefits reached the genuine beneficiaries.

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