CM vows immediate release of loan waiver amount

31 Dec '10

1 min read

Andhra Pradesh Chief Minister N Kiran Kumar Reddy, who recently assessed the problems of the powerloom and sericulture sector, agreed to immediately release the first instalment of the loan waiver amount that is Rs 870 million, as per their promise and to release another Rs 2.24 billion by March, 2011.

Further, the State Minister for Textiles – Shankar Rao, while speaking to the media, stated that the CM has also raised the subsidy on yarn purchases from 10 to 20 percent. Around four lakh weavers' families are expected to benefit from the move, he said. He further added that the State Government also proposes to reinstate a thrift scheme with the state and the Centre contributing four percent towards the same.

He also stated that as the silk yarn prices have gone up from Rs 1,600 to Rs 3,300, the government has resolved to float a subsidy scheme where each of the weaver's family would get Rs 800. The scheme is seen to benefit around one lakh weavers' families.

Also, the reports revealed that the government proposes to reintroduce the 50 percent power subsidy for the powerlooms, immediately.

Fibre2fashion News Desk - India

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