The Hindu : Andhra Pradesh News : Make lending rate to SHGs uniform, YSR tells Centre

Online edition of India's National Newspaper
Wednesday, Jun 30, 2004

Andhra Pradesh

Andhra Pradesh

Make lending rate to SHGs uniform, YSR tells Centre

By Our Special Correspondent

HYDERABAD, JUNE 29. The Chief Minister, Y. S. Rajasekhara Reddy, on Tuesday made a strong pitch with the Centre to peg the interest rate of loans extended to self-help groups by commercial and regional rural banks at a uniform 8 per cent.

Speaking at the conference of Chief Ministers and State Ministers of Rural Development at Vigyan Bhavan in New Delhi, he said commercial banks were lending at 8 to 9 per cent and RRBs at 10 per cent, a variation that was leading to discontentment in self-help groups (SHGs). Copies of his speech were released here.

The Chief Minister said AP had nearly half (4.86 lakhs) the country's SHGs which had been recognised as the medium for taking forward poverty alleviation programmes such as SGSY. He, therefore, pleaded for restoration of the State's allocation under SGSY to Rs. 102 crores to strengthen the large number of self-help groups in the State.

On its part, the State Government was taking pioneering steps to provide bank linkage to SHGs so that they moved to the production stage through creation of permanent assets. This year, it was planned for linkage programme worth Rs. 1200 crores.

Dr. Reddy proposed that the Centre place at the discretion of the State Governments a substantial allocation of funds for rural development projects. Although there was some flexibility in the Centre's guidelines for implementing the projects, the State Governments had their own specific needs.

He also advocated the need to revisit various poverty alleviation programmes to ensure a more focussed approach for their implementation to get better results. After formation of new Governments at the Centre and in AP, people were looking forward to the final results of these programmes.

Dwelling upon specific issues of rural development, he urged the Centre to restore to AP the annual allocation of Rs. 190 crores under PMGSY since there were 13000 habitations that lacked motorable road connectivity.

Dr. Reddy said about 2862 No Safe (drinking water) Source (NSS) habitations which suffered due to high fluoride content or brackishness had been coverted into fully covered status under the Sub-Mission Programme by using funds from Rajiv Gandhi National Technology Mission. As this scheme was discontinued, it would take 25 years to cover these habitations. There was urgent need to revive the SMP and sanction all the projects within five years.

The Chief Minister also pleaded for bringing more beneficiaries of old-age pension scheme in AP under the National Social Assistance programme, enhancing the monthly pension from Rs. 75 to Rs. 200 and extending the total sanitation programme to deserving families under the Above Poverty Line (APL) category.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh

News Update

Stories in this Section

Steps to expedite trial of post-poll violence cases

Pesticide exposure claims another child labourer's life

Heated debate over law and order

Time-bound probe into Sri Lakshmi case promised

Make lending rate to SHGs uniform, YSR tells Centre

Dry spell hits sowing in Mahabubnagar district

Housewife commits suicide; SI, cops face villagers' ire

Government to consult parties on Supreme Court Bench

Power project will go on even if BPL backs out: Rosaiah

Sinking a record, staying afloat

2 ryots end lives

Uproar over motion on GO 610

GCC target

Briefly