AP setting example for country in supporting small businesses: CM Jagan

Vijayawada: Chief Minister Y.S. Jagan Mohan Reddy has deposited a total of Rs 431.58 crore under the Jagananna Thodu, benefiting 3,95,000 small and marginal street vendors and artisans, on Thursday.

The CM did so in online mode from the CM's Camp Office in Tadepalli. He said the AP government is setting an example for the country by majorly supporting small businesses.

“New interest-free loans through banks worth Rs 417.94 crore to 3,95,000 small and marginal traders and artisans at the rate of Rs 10,000 or more, and Rs 13.64 crore to 5.81 lakh beneficiaries as interest subvention, out of the 16,73,576 total beneficiaries, have been directly deposited into the bank accounts of the beneficiaries.

The process is done in a transparent manner without the involvement of middlemen.

Jagan Mohan Reddy explained that the amount, released for the eighth consecutive time, included interest subvention amounting to Rs 13.64 crore, which benefitted 5.81 lakh persons who had availed loans and repaid them promptly on time.

The state government, the CM said, decided to implement Jagananna Thodu after he came to know of petty traders’ financial difficulties during his Padayatra.

“The scheme is helpful to petty traders selling vegetables, fruits, and food products in push carts, baskets, on motorcycles and autorickshaws in the streets. Artisans who make Bobbili Veena, the Kondapally and Etikoppaka toys, the Kalankari and lace items and puppets have also been receiving loans under the scheme,” the CM said.

Lakhs of street vendors and artisans have been repeatedly availing and repaying bank loans promptly, he said, adding that the loan recovery rate has also gone up to more than 95 per cent.

“It is a matter of pride that 87.13 per cent of the beneficiaries are women, and 79.14 per cent of them are from the SC, ST, BC, and minority groups. Aided by the YSR Aasara and YSR Cheyuta, the scheme has also become a major instrument in the transformation of the rural economy and empowerment of small traders and artisans, especially women members.”

The CM said the results of the transformation in the rural economy were tangible in the NPA (non-performing asset) value of the self-help groups coming down to less than 0.3 per cent now from 18 per cent under the TD rule.

“While 58, 65,000 people benefitted under the PM Swanidhi scheme across the nation, more than 16 lakh street vendors and artisans benefitted from this in AP state.”

The CM said, “As against the total Rs 10, 200 crore provided as interest-free loans across the nation, AP alone spent Rs 3,373.73 crore so far towards interest-free loans. The official machinery has made it possible with the active role of village and ward secretariat staff and volunteers. Introduced to help the street vendors avoid approaching private financiers and obtaining loans at hefty interest rates, the government has so far reimbursed a total interest of Rs 88.33 crore, benefitting 15.87 lakh street vendors.”

Some of the beneficiaries also participated in the programme in virtual mode and thanked the chief minister for helping them through the scheme.

Deputy Chief Minister Mutyala Naidu, Chief Secretary Jawahar Reddy, special CS Ajay Jain, SERP CEO Md Imtiaz, Special Secretary Mohd Deewan Maidin, MEPMA MD Vijayalakshmi, Stree Nidhi MD KV Nanchariah, SLBC AP convener Ravindra Babu, officials of various banks and senior officials were present.