Andhra government to fulfill poll manifesto, set to free SHGs from debt under new scheme

Andhra Pradesh Chief Minister Jagan Mohan Reddy is set to fulfil the promise from his poll manifesto made by him prior to the 2019 assembly elections. Before the 2019 poll, Reddy had observed that lakhs of Andhra women from poor background had incurred massive loans to cope with the expenses towards education, health care, elderly care, daily needs, and other emergencies due to which they were trapped into a vicious cycle of debts due to their inability to cope with the exorbitant interest rates.

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'YSR Asara’ scheme for Self-Help Groups

Taking note of the plight of the women, Reddy had promised that if elected to power, he would reimburse the outstanding loans taken by all the women members of self-help groups belonging to the SC, ST, BC, and minority communities as on 11 April 2019, in four instalments.

About Rs 25,383.49 crore was the amount, when the sum of the outstanding loans as on the cut off date was calculated. Andhra Pradesh government has decided to launch ‘YSR Asara’ scheme for Self-Help Groups (SHGs) on September 11. Under this scheme, a sum of Rs 6345.87 crore will be released for the benefit of 7,91,257 SHGs.

The scheme vows to protect women from re-entering the vicious debt trap cycle. Even if the loans have been repaid by women, the amount can also be used for their future prospects, as the government wants to stick to its promise of reimbursing the total outstanding loan. The chief minister had conducted a 3,648 km Padayatra before the elections to understand the situation of various communities and issues that have gripped the people of the state after which the chief minister had made the promise.

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