If the DMK returns to power, it would need as much as Rs.17,000 crore to waive off education loans promised by the party in its election manifesto .
While it is not yet clear if the plan covers all education loans or only a particular segment will get this waiver, the plan could put a huge hole in the State’s finances.
As of March 31, 2015, the total outstanding education loan in Tamil Nadu was Rs.16, 482 crore. Around 9.56 lakh beneficiaries in the State have availed education loans. Of this, Rs.15,700 crore was disbursed by public sector banks, according to C.H. Venkatachalam, general secretary, All India Bank Employees Association (AIBEA).
“Currently, one out of every four education loans taken is from Tamil Nadu. Banks are getting choked due to education loans as there are too many NPAs [Non-Performing Assets],” said a manager of a public sector bank who wished anonymity. “The manifesto does not clearly indicate how this loan will be paid, so it is very difficult to come to a conclusion,” he added.
While the party has announced plans to distribute smartphones for the poor, it is yet to work out the modalities. But the scheme will help the poor and economically weaker sections access government schemes at the touch of a button, say DMK leaders. The smartphones are likely to come with a pre-loaded app to enable people access these schemes and information.
“We will come out with the Right to Services Act. People have the right to know and access government schemes easily. Poor people, farmers and those like roadside vendors will not know what schemes are on offer or how to access them. The smartphone and the app will ensure they have the right information in their hands,” former Union Minister T.R. Baalu, who headed the manifesto drafting committee, told The Hindu. “If the services are not delivered on time, the Lok Ayukta can act on it. Everything is inter-related, so that even the poorest of the poor will have access to proper delivery mechanism and right information on their hands,” he said, adding that a decision on when to institute the Lok Ayukta would be taken by the Cabinet if the party came to power. It would also become imperative for government officials to constantly update the necessary information so that everyone is aware of the schemes. Sources in the IT industry say the smartphone scheme would help higher internet penetration in Tamil Nadu and also benefit retail, healthcare and education sectors.
However, they point out that the laptop scheme turned out to be unhelpful as no adequate training was provided to students.
