April 15, 2024

Decks cleared for Deen Dayal Upadhyay Bunkar Yojna

TAP | Updated: May 25, 2017

ITANAGAR, May 25: The Pema Khandu government in Arunachal Pradesh has cleared the decks for implementation of the Deen Dayal Upadhyay Bunkar Yojna through a notification by the state Finance Department.

In the budget presentation in March this year, Deputy Chief Minister Chowna Mein, who also holds the Finance portfolio, had told the Assembly that the state government proposed to provide interest subsidy of 7 per cent on working capital loan up to Rs 2 lakh irrespective of the quantum of loan extended to women weavers by the bank, a report from the CMO said.

The scheme to encourage women weavers across the state to access affordable credit from banks for working capital requirements has now been officially notified and all set for implementation.

As per the scheme, 7 per cent interest subvention would be offered on all short term credit, cash credit limit, working capital limit, weavers credit card and swarojgar credit card availed by women weavers of the state.

This would be applicable for loans availed from commercial banks as well as regional rural banks on or after April 1, 2017 and disbursed during current financial year.

Interest subvention would be calculated on the short term loan amount from the date of its disbursement up to the date of actual repayment of the loan by weavers or up to the date of the loans fixed by the banks, whichever is earlier, subject to maximum period of one year.

The loan application under the scheme, covering all categories of women weavers, irrespective of unit size or number of looms, would be forwarded through circle officers, who would certify that the applicant is in possession of working looms. Only individual woman weaver or group of women weavers will be eligible for the scheme and not companies or partnership firms.

Further, the benefit of the scheme would not be applicable to term loans and other loans extended by banks to weavers.

A target of 3,000 women weavers has been fixed for this financial year and the bank wise and district wise targets are being formalised. In order to fix responsibilities on banks to fulfil their given targets, defaulting banks will be reported to RBI.

NABARD will act as channel partner for reimbursement of interest subvention to banks which have to be claimed by the banks in prescribed format.

Directives have been issued by the government for all deputy commissioners and banks to make all out efforts for wide publicity of the scheme and the circle officers to educate women self-help groups and individual weavers for timely repayment.

The scheme once implemented would empower rural women and provide sustainable livelihood to thousands of women engaged in traditional weaving but have been discouraged in recent times for want of proper support, the report added.