The Hindu : Andhra Pradesh News : A ray of hope for Sircilla weavers

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Wednesday, Nov 19, 2008
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Andhra Pradesh

Andhra Pradesh

A ray of hope for Sircilla weavers

Staff Reporter

Government to implement Total Financial Inclusion scheme

Healing touch: Andhra Bank Chairman and Managing Director R.S. Reddy participating in special DCC meeting in Sircilla town on Tuesday.

KARIMNAGAR: The State government has embarked upon an ambitious task of freeing all the distressed powerloom weavers of Sircilla from private debts by implementing the Total Financial Inclusion (TFI) programme.

Accordingly, the State level bankers committee (SLBC) had also provided some relaxation for the implementation of TFI in the whole of Sircilla town to provide financial assistance to the tune of Rs. 50 crore to about 1,200 women’s self-help groups and relieve them of private loans.

The powerloom weavers had resorted to suicides due to increasing debts owed to micro finance companies, which collect about 36 per cent interest.

The government, which had identified this problem, had decided to clear off all private loans of weavers by implementing TFI and providing loans at three per cent (Pavala Vaddi scheme). Banks have already extended financial assistance of Rs 1 crore to about 20 SHGs initially under the TFI scheme.

About 26 community resource persons (CRP) from the State were deployed in Sircilla to spend at least three days with each weaver’s family to create a micro-credit plan and help them clear their debts.

Help promised

Moved by the plight of the distressed powerloom weavers of Sircilla, Andhra Bank Chairman and Managing Director R.S. Reddy also visited Sircilla on Tuesday and participated in the special District Consultative committee (DCC) meeting to implement the TFI scheme. Mr Reddy assured all assistance to the district administration to help the weavers free themselves from private debts.

District Collector Sandeep Kumar Sultania told The Hindu on Tuesday that all the 1,200 self help groups will be covered under the TFI scheme and the financial relief to the weavers’ families will be provided from private finance companies in the next six months.

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