Date:30/09/2004 URL: http://www.thehindu.com/2004/09/30/stories/2004093006490400.htm

Andhra Pradesh

YSR hints at merging Velugu, DWCRA

By Our Special Correspondent

HYDERABAD, SEPT. 29. The Chief Minister, Y. S. Rajasekhara Reddy, on Wednesday hinted at merger of Velugu, the poverty alleviation project, and the DWCRA women's empowerment programme and renaming it after the former Prime Minister, Indira Gandhi.

Speaking at the State-level workshop on Self Help Groups (SHGs) with the theme, `managing scale', Dr. Reddy promised release of revolving fund to the DWCRA groups, 20 per cent of which had not yet been received, and reiterated his Government's commitment to ensure that they got loans at 3 per cent rate of interest. "We will maintain this rate, irrespective of the bank rates, by taking care of the remaining part."

High interest rate

He said his Government wanted to see the end of the high and compounding interest regime in villages, one of the main causes of farmers' distress and impoverishment. "I have come across cases where women selling vegetables obtained loan at the interest rate of Rs. 5 for every Rs. 100. What will they earn to get rid of their poverty?" he asked.

He wanted SHG members to use the reduced interest rates to expand the activities to agriculture and non- agriculture areas. "They can make farmers raise fodder and buy cattle to enable them to survive the drought conditions." The SHGs should fix targets for raising resources and strive to achieve them. He had a word of praise for the NGOs.

Recommendations

The key recommendations suggested by the two-day workshop to the Government include convergence among stakeholders with clearly defined roles and responsibilities, a clear policy on 25 paise interest and effective delivery of member education through use of information and communication technologies.