Date:13/05/2005 URL: http://www.thehindu.com/2005/05/13/stories/2005051312220500.htm

Andhra Pradesh

SHGs to get loans at 25 paise interest from July: Minister

Staff Reporter

Rs. 175 crores sanctioned for seven projects in Adilabad

New projects to bring 1.25 lakh acres under irrigation
Interest waiver given for farmers to the tune of Rs.35 crores

Minister distributes assets

ADILABAD: The Social Welfare Minister and Adilabad district in charge, D.S. Redya Naik, on Thursday said loans for self-help groups (SHGs) at 25 paise rate of interest would be given from July. The quantum of new loans at this rate of interest would be Rs. 1,500 crores in the State, he said.

Assets distributed

Distributing assets costing Rs.11.34 crores to over 16,000 beneficiaries at the Police Parade Grounds here at the `loan mela', the Minister made compared achievements of the Congress Government with those of the Telugu Desam Party (TDP).

He said the TDP had extended the same rate of interest on deposits and charged 1.25 per cent interest on loans. The Congress Government had done away with the higher rate of interest and extended loans at 25 paise interest.

Mr. Redya Naik said the TDP had spent only over Rs.11,000 crores on irrigation development during its nine-year rule. The Congress had spent an equal amount within the last one year which would bring an additional 65 lakh acres of fallow land under irrigation, he pointed out.

Coming to development of irrigation in Adilabad district, the Minister said Rs. 175 crores have been sanctioned during the last one year for the seven new projects in the district. These projects would bring 1.25 lakh acres of land under irrigation, he added.

On the power sector, Mr. Redya Naik said the Congress had kept its electoral promise of free power supply to the agriculture sector. Besides, it had waived power arrears of farmers.