Andhra announces Rs 1,690-cr loan waiver

In yet another major sop ahead of elections, the Congress government in Andhra Pradesh today announced loan waiver for weaker sections, physically challenged persons, minorities and women, amounting to Rs 1,690.60 crore and covering about 4.38 million beneficiaries.

The waiver, up to a maximum ceiling of Rs 1 lakh, will be applicable to loans obtained by scheduled castes, scheduled tribes, backward classes, physically handicapped persons, minorities and women from various state-run corporations. This was announced by Chief Minister Y S Rajasekhara Reddy in the Assembly.

While the total outstanding dues to various corporations stood at Rs 1,820 crore, the waiver would be to the tune of Rs 1,690.60 crore with Rs 1 lakh being the ceiling for each beneficiary, the chief minister said in his statement in the House.

"The loan waiver is aimed at providing some relief to those who had taken loans from the corporations. This apart, we are also planning to increase lending to the poor," Reddy said.

The state government would also provide counter-guarantees to the loans to be obtained by scheduled caste and scheduled tribe entrepreneurs from the central financial institutions, the chief minister added.