Chief Minister YS Jagan Mohan Reddy handing over the Cheque to Petty vendors after releasing the funds to Jagananna Thodu scheme from the camp office on Monday. (Photo: By Arrangement)
Vijayawada: Chief Minister Y.S. Jagan Mohan Reddy on Monday credited Rs 526.62 crore into the bank accounts of 5,10,462 small business people and street vendors under the Jagananna Thodu programme Phase-3. Of this, Rs 510.46 crore is meant to provide interest-free loans of Rs 10,000 per head and Rs 16.16 crore towards reimbursement of interest.
Speaking at his camp office after releasing the money at the press of a button on the computer, Jagan Mohan Reddy said that so far the government has provided financial assistance to 14,16,091 beneficiaries including 5.10 lakh on Monday, and he felt happy for doing so.
The Chief Minister appreciated the small business people and street vendors for doing business with no expectation of a huge income and described their activity as a service instead of a business.
Jagan Mohan Reddy said that after seeing their pain during his padayatra, he had come up with the idea of the Jagananna Thodu scheme to provide financial assistance to them, wherein the government would stand security to help them borrow from banks.
He pointed out that the vendors and small business people used to approach private money lenders to raise money at exorbitant interest rates earlier, as they failed to get loans from the banks for want of security. Now, the state government was bearing the burden of interest. He said that the YSRC government had provided interest-free loans of Rs 1,416 crore to 14,16,091 beneficiaries in addition to providing nearly Rs 32.51 crore towards reimbursement of interest.
The CM said that in addition to covering the small business people and street vendors under Jagananna Thodu scheme, they had also brought people who make toys, lace works, potters and others to extend financial help of Rs 10,000 under the scheme.
Referring to the impact of Covid-19, the CM said that the government had extended financial assistance of Rs 1.29 lakh crores in the state so far and claimed that AP was the first in the country to do so.
Meanwhile, nearly 1.04 lakh beneficiaries received Rs 104.11 crore under the Jagananna Thodu scheme in Godavari districts.
A beneficiary Kandivali Lakshmi from Indrapalem said that the financial assistance she got under the scheme helped her set up a small hotel. Another beneficiary Kanchumathula Durga of Jagannaickpur said that the amount of Rs 10,000 received under the scheme helped her invest in sari and garments business.
A beneficiary from West Godavari D. Siva Prasad said that he got Rs 650 as reimbursement of interest under the scheme and he set up gift articles business.