Finance
Odisha Chief Minister Naveen Patnaik today launched the Interest Subvention Program for approximately 2.5 lakh Self Help Groups (SHGs) in the state that are part of the Mission Shakti Department.
The initiative will reimburse Rs 125 crore in interest on loans taken by Self Help Groups, effectively making the loans zero interest.
Mission Shakti has budgeted Rs 1200 crore in interest subvention benefits for SHGs over the next five years.
The increased interest subvention benefit will undoubtedly increase credit flow to SHGs, increase average loan size, and reduce NPA position. Over the next five years, funds totaling Rs. 50,000 crore are expected to be distributed to SHGs throughout the state.
On the occasion, the CM also inaugurated the District Level Federation building of Jajpur district. To provide a greater platform to SHG members, a state-of-the-art Mission Shakti Bhawan equipped with a sales outlet, computer training centre, sewing machine training centre and a training cum multipurpose theatre has been provisioned.
“Mission Shakti has become a way of life. I wish to see mothers as entrepreneurs. They have significant role in transformation of Odisha,” said Patnaik.
Speaking at the event at Lok Seva Bhawan here, Sujata R Karthikeyan, Commissioner-cum-Secretary, Department of Mission Shakti said, “The State Government has changed the definition of loan. While our mothers were earlier approaching banks for loans, the banks are nowadays coming to them to offer loans. The interest is also getting reimbursed.”
Source:SE
