AP govt mulls exclusive bank for handloom weavers in state

"On the lines of Stree Nidhi, a financial co-operative we opened for women self-help groups, we want to open an exclusive bank to serve the needs of handloom weavers. We will discuss the modalities with bankers and officials," Chief Minister N Kiran Kumar Reddy said here today.

Addressing the 179th meeting of the State-Level Bankers Committee, the Chief Minister pointed out that lending to financial sector from banks was low.

As against the target of financing Rs 36.15 crore to 955 handloom weavers groups this fiscal, only Rs 0.02 crore was released by banks in the first quarter.

Under the Artisan Credit Cards, not a single rupee was released so far as against the target of Rs 21.80 crore.

The Chief Minister said the state government waived loans to weavers to the tune of Rs 164 crore so far, while another Rs 104 crore was being released by the Central government under the Revival, Reform and Restructuring Package.

"We will release an additional Rs 29 crore soon to complete the loan waiver scheme," he added.

Meanwhile, the state government is holding a day-long session here tomorrow to discuss the issues related to the handloom sector and chalk out steps to pull it out of crisis.