AP govt finalizes debt waiver norms for weavers

YarnsandFibers News Bureau 2016-01-02 14:00:00 – Andhra Pradesh

The Andhra Pradesh government finalizes the debt waiver norms for handloom and powerloom weavers. The programme would cover loans disbursed to individual weavers and weaver groups that were outstanding as on March 31, 2014. Individual loans availed by weavers, group loans, and loans of powerloom units below 5 HP and availing the 50 percent power subsidy scheme would be eligible for the waiver.

But members who have availed the benefit of debt redemption as a member of DWCRA/MEPMA or other self-help group would not be eligible under the scheme.

Based on the recommendations made by the P. Kotaiah Committee, the government fixed the ceiling for individual weaver and powerlooms at Rs. 1 lakh. The ceiling for groups would be Rs. 5 lakh, subject to the condition that within the group, the eligibility for redemption of loan outstanding per individual would be limited to Rs. 1 lakh.

The government has also set a timeframe for implementation of the scheme. Accordingly, the district-level committees would approve the loan waiver within seven days of receipt of the list of eligible beneficiaries from banks/department. Subsequently, money would be transferred to the beneficiary’s account within seven days.

The government has announced constitution of district and State-level committees to monitor the implementation of the scheme. The district committees headed by the respective Collectors would scrutinize the list of eligible weavers with reference to genuineness of the claims and approve the list and recommend redemption if it was found in order. Based on the recommendations of the district-level committee, the Handlooms and Textiles Commissioner would directly release the funds to the banks concerned from a central account.

The State-level committee would be headed by the Industries & Commerce Department Secretary, with Handlooms and Textiles Commissioner as the co-chairman/convenor.

The committee with Joint Director of the department, Nabard Chairman and Managing Director, or his nominee, member-secretary of the SLBC, and APCOB Chairman as members would monitor the implementation of the scheme and redress grievances as and when they were received. The lending institutions, on their part, would be responsible for the correctness and integrity of the lists of eligible beneficiaries and the particulars of the debt redemption scheme in respect of each weaver. Weavers whose loans would be redeemed under the scheme would be eligible for fresh finance from the lending institutions, provided the amount waived was equal to the outstanding.

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