(a) whether the Government of Andhra Pradesh introduced Pavala Vaddi in 2004-05
with an objective to provide interest subsidy on the loans taken by the Self Help
Groups (SHGs);
(b) if so, the details thereof, year-wise and the present status; and
(c) the financial assistance so far given by the Union Government for this project, year-
wise?
MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI PRADEEP JAIN `ADITYA`)
(a)&(b): Yes, Sir. The Government of Andhra Pradesh introduced Pavalavaddi Scheme
(Interest Subsidy) during the year 2004-05 with an objective to provide interest subsidy on
the Bank loans taken by the Self Help Groups in Andhra Pradesh to reduce the financial
burden on them. The Scheme is applicable to all loans extended by banks on or after
01.07.2004, under SHG Bank Linkage Programme.
As per information received from Government of Andhra Pradesh, banks have been
giving loans under SHG-Bank Linkage Programme with different rates of interest ranging
from 10% to 13%. The Government of Andhra Pradesh gives incentive as back end
reimbursement of the interest paid by SHGs above 3% per annum on the loans taken by the
Self Help Groups under this scheme. Year-wise details of the Scheme including its present
status are given below:-
(In Crores)
Year Demand Allocation Releases Expenditure Physical Achievement (Groups)
2004-05 15.00 10.00 10.00 475164
2005-06 61.00 48.00 48.00 52.67
2006-07 121.00 75.00 56.25 50.02 290825
2007-08 196.00 100.00 100.00 112.30 554359
2008-09 300.00 250.00 250.00 175.30 714930
2009-10 550.00 200.00 100.00 173.57 426611
2010-11 749.17 200.00 270.00 268.24 741313
Total 1992.17 883.00 834.25 832.10