One-time settlement for Akshaya centres

The Kerala Cabinet on Wednesday decided to write off part of the loans availed by the Akshaya centres in Malappuram district.

The centres were started as part of the e-literacy programme of the government, aimed at bridging the digital divide, in 2002. Though they later started offering Internet services, they could not turn the

corner, especially after the government support for the programme waned.

Chief Minister V. S. Achuthanandan said that the centre would now have to repay only 75 per cent of their loans from banks as part of the one-time settlement. The government would pay half of the dues, reducing the amount payable by the entrepreneurs to 37.5 per cent.

The Chief Minister said that the government would soon take a decision on the future of the Smart City project.