ANDHRA PRADESH

Uncertainty dogs Pavala Vaddi scheme

Staff Reporter

It is set to be launched on February 7

ELURU: Ambiguity seemingly looms over the Chief Minister Y.S. Rajasekhar Reddy’s pet scheme of “Pavala Vaddike Rytulaku Runalu” which is all set to be launched on February 7 all over the State in terms of its application. The lack of clarity in implementation of the scheme started by the administration and bankers at a special District Consultative Committee (DCC) meeting held here on Saturday. A section of bankers at the meeting feared the new scheme would run counter to the Kisan Credit Scheme launched during the NDA regime some seven years ago.

Repayment

As per the guidelines, the Pavala Vaddike Rytulaku Runalu scheme has the repayment period of six months. The farmers who obtained crop loans from banks for kharif and clear the dues by the end of March are eligible for the relief on interest under the scheme.

So also, the farmers who take loans during the rabi and repay the amount by June 30 are entitled for the pavala vaddi scheme. But to the government’s dismay, such a six-month seasonal discipline is no longer in existence now after the advent of the Kisan Credit Scheme. The Kisan Credit Scheme provides for extension of all crop loans from banks to the farmers with a repayment period of one year.

A section of bankers sought to know whether the farmers who obtained loans under the Kisam Credit Scheme with a one year repayment period, were eligible to benefit from the new scheme. But they failed to get a convincing reply.

Meanwhile, the DCC meet had resolved to arrange Rs. 200 crore of the bank-linked finance to the women Self Help Groups in the district during the Chief Minister’s visit slated for January 31.

Even as the district administration had the target of providing Rs. 650 crores of bank-linked finance to the SHGs by the end of the current fiscal, it only ensured Rs. 360 crore as of now.

G. Veera Prasad, Assistant General Manager, National Bank for Agriculture and Rural Development (NABARD), highlighted the need for enhancement of credit absorption capacity of the SHGs by undertaking a slew of skill development programmes in the dairy farming and paddy procurement under the NABARD-sponsored Micro Enterprise Development Programme.

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