Special Correspondent

Six more financial cooperative federations on the anvil

HYDERABAD: Resuming the spree of concessions interrupted by last month’s byelections, the Congress government has announced that it would encourage members of the Backward Classes to start their own industries by extending large loans at three per cent interest.

It has also decided to set up six more financial cooperative federations in the State to serve Darjees (tailors), Sagaras/Upparas, Viswabrahmins, Salivahanas, Valkmiki/Boyas and Doodekulas. Chief Minister Y. S. Rajasekhara Reddy asked the officials of the BC Welfare Department to phase out the present system of extending small loans ranging from Rs 2,500 to Rs. 5,000 to individual beneficiaries for pursuing their traditional occupations. Instead, he wanted them to be clubbed into economic groups like DWCRA and provide loans from banks through their federations to set up modern industries.

‘Pavala vaddi’

Reviewing the issues relating to the AP Washermen’s Financial Cooperative Federation and other community-specific federations set up by the government, at a meeting here on Saturday, Dr Reddy, however, said these loans would be offered at ‘pavala vaddi’ . The government would bear the interest burden beyond 3 per cent by releasing Rs. 50 crore each to the existing federations of Rajakas, Nayee Brahmins and Vadders.

T. Satyanarayana Rao, secretary, BC Welfare, later told reporters that the present ‘meagre budget’ of Rs. 50 lakh allocated each federation would be scaled up in line with the Chief Minister’s directive. A workshop would be organised at Hyderabad on July 21 for officials, master craftsmen and artisans .