Sick self-help groups (SHGs) in the State have made a turnaround, thanks to a series of steps taken by the “women-friendly government” to free them from mounting debts in phases and revive economic activity, Chief Minister Y.S. Jagan Mohan Reddy has said.
Announcing the release of the second of the four-tranche financial assistance of ₹6,440 crore of the total ₹25,517 crore under YSR Aasara scheme here on Thursday, Mr. Jagan Mohan Reddy said the government was committed to giving a fillip to the SHG movement.
“The series of initiatives such as pacts with leading banks and FMCG firms, which include P&G, ITC, Reliance, HUL, Allana, Mahendra Group, Kheyti Group and Tanager, and providing technical, banking and marketing assistance and training facilities are aimed at bringing back smiles on the faces of SHG members,” he said.
The amount would be credited to the bank accounts of the members between October 7 and 18, except in Kadapa district where the model code of conduct was in force in view of the Badvel byelection.
“The SHGs in Kadapa district will get the financial assistance between November 6 and 15,” he added.
The SHGs, which had been downgraded to ‘C’ and ‘D’ by the credit rating agencies during the TDP term, bounced back to Grade A, Mr. Jagan Mohan Reddy said.
Interest-free loan
“More than 3.05 lakh women are now able to run viable economic ventures getting an additional monthly income of ₹7,000 to ₹10,000, thanks to the hand-holding provided by the government,” he said.
The interest-free loan scheme that had been scrapped by the TDP government was also revived, he added.
The bank accounts of 98 lakh women had been credited with ₹2,362 crore under the ‘YSR Sunna Vaddi’ scheme. So far, more than 78 lakh women had received financial assistance of ₹12,759 crore, he said.
Tie-up with Amul
Making a particular mention of the tie-up with Amul, the Chief Minister said dairy farmers got an additional income ranging from ₹5 to ₹15 per litre of milk due to increase in competition among dairy majors.
About 18.36% SHGs had become bankrupt during the TDP regime due to its failure to keep its poll promise of loan waiver, which forced the SHGs to pay about ₹3,036 crore as penal interest, he said.
The non-performing assets of the banks had come down to 0.73%, thanks to the recovery rate of loans advanced to the SHGs going up to over 99.5%, Mr. Jagan Mohan Reddy said.
