AP govt announces loan waiver scheme to handloom and powerloom sector

Andhra Pradesh government has announced debt 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.

According to officials, 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.

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.

After the committee submitted its report in July 2014 to the Commissioner, Handlooms and Textiles, AP, several months passed by as the latter sought the details of outstanding loans availed by weavers from all the banks as on March 31, 2014 and submitted a report to the Government that the financial burden would be about Rs.110 crore.

According to the GO issued on Tuesday, under the scheme, 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.