Government have sanctioned a budget of Rs.210 Crore for the implementation of economic support programmes to the Backward Classes and other 7 BC Federations.
Government had introduced a subsidy financial assistance scheme vide G.O.Rt.No.57, BC Welfare (B1) Department, Dated:06.10.2008 in lieu of medium term loan to each member of the primary co-operative society affiliated to the BC Federations. The following funding pattern is in vogue with the issue of G.O. cited.
Unit cost (15 members group) Rs: 1.50 Lakh
Subsidy of 50% (i.e. 5000 per member) Rs: 75,000/-
Beneficiary contribution Rs: 15,000/-
40% of unit cost is bank loan Rs: 60,000/-
Total Rs: Rs.1,50,000/-
The funding pattern for BC Corporation are individual loans with bank linkages for Urban and Rural for the caste based federation, the primary Societies / group funding is envisaged with bank linkages. The bankers are not coming forward to sanction loans more particularly to the societies which are meant for hardworking professional and occupational Backward Classes. The BC Castes organizations, NGO’s, elected representatives have been requesting for direct funding by Government eliminating Bank linkage.
In order to utilize the budget allotted and lapsing of funds and for the faster implementation of the economic support programmes for BCs under aegis of Federation. Government desirable to introduce new model of Direct loaning to Societies and its members covering at least one lakh beneficiaries under(1000) Societies with one lakh unit cost as direct subsidy to be directly passed on to the account of beneficiaries / societies without linkage, which the beneficiaries will utilize for purchase of tools / implements / machinery required for their day to day work to avoid drudgery ad enhance the earnings incremental income during current year and next financial year 2013-2014 budget.
5. 1 Implementation / Grounding of the Schemes
The society will open SB A/c with nearest bank (Commercial / Co-operative Bank) and deposit beneficiaries’ contribution to meet working capital as revolving fund needs of each member.
2 The beneficiary member opens SB A/c Zero A/c with Commercial / Co-operative Bank.
3 The District Collector / Chairman of District Society / Federation will accord sanction and operate the A/c for direct transfer of subsidy cash through the concerned Principal Bank.
4 The Member of selected Society will furnish the Credit Bills from the firms (which have S.T. / VAT) with firm Bank A/c number to enable transfer of cash subsidy to the firm A/c directly after delivery of implements / equipments / tools.
5 The beneficiary will take delivery of equipments / tools / implements directly from the firm.
6 The selection of the Society will be according to date of registration.
Government after careful examination of the above issue have decided to constitute a committee for implementing of economic support programmes to the Backward Classes and (7) other BC Federations with the following (6) Government Officers as members with immediate effect:-
1. Principal Secretary – Institutional Finance – Chairperson
2. Principal Secretary – BC Welfare /
Chairman BC Finance Corporation – Member Convener
3. Convener SLBC – Member
4. G.M. / Representative from NABARD – Member
5. MD APCOB – Member
6. Principal Secretary RD – Member
The Committee shall frame the policy guidelines for implementation of the Scheme. They will have continuous sittings and furnish the draft report to the Hon’ble Chief Minister.
This direct subsidy release scheme will benefit one lakh most backward classes belonging to Nayee Brahmin, Washermen, Rajaka, Vaddera, Krishna Balija, Sagara Uppara, Valmiki Boya, Bhattraja etc.,
The Vice Chairman & Managing Director, AP BC Cooperative Finance Corporation Limited shall take further necessary action accordingly.