Loan Waiver Scheme Announced By AP Govt

Loan Waiver Scheme Announced By AP Govt

Andhra Pradesh government has announced loan waiver scheme to handloom and powerloom sector. Under this scheme loans worth Rs.110.96 crore will be waived. It was one of the election promises made by the Telugu Desam Party president N. Chandrababu Naidu along with the debt redemption scheme for farmers.

The loan waiver would be implemented during Janmabhoomi programme commencing from January 1 and the finance department also gave its approval.

Loan waiver to be implemented at one go will benefit 24,209 weavers whose total loans amounted to Rs.82.84 crore. Besides this loans of Rs.11.83 crore availed by 674 weaver SHGs, Rs.16.27 crore borrowed by 584 powerlooms would be waived, according to official sources.

Soon after the TDP rode to power, the Chief Minister constituted an expert committee headed by P.Kotaiah, former NABARD Chairman, to examine in detail the implications and to suggest the modalities of implementing the debt waiver scheme to both handloom and powerloom weavers.

Loans against weavers credit cards and individual loans up to Rs.1 lakh, Weavers Group loans up to Rs.5 lakh, loans up to Rs.1 lakh availed by powerloom units with below five HP power connection and availing 50 percent power subsidy scheme will be eligible for the loan waiver scheme.