Andhra Pradesh CM releases Rs 370 crores under phase 2 of Jagananna Thodu scheme

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy released Rs. 370 crores on Tuesday under Phase 2 of the Jagananna Thodu scheme. The scheme was launched from the office of Tadepalli Camp. A total amount of Rs. 370 crores will be distributed to 3.75 lakh beneficiaries under Phase 2 of the Jagananna Thodu scheme. 

The scheme was introduced by the Andhra Pradesh Government to extend an interest-free loan of Rs. 10,000 to all the small vendors of the state. The scheme aims to liberate the small vendors from paying a hefty amount of interest to the private parties and suffer debts. 

CM Reddy while launching Phase 2 of the Jagananna Thodu scheme stated, "These small vendors, most of the time, do not receive financial aid from banks because of the volatility of the market they represent. Even if they do manage to secure a loan from other sources, they pay exorbitant rates of interest. During my 3,648 km Padayatra, I saw the circumstances these vendors battle with daily. I am grateful for this opportunity to change that with this scheme."

How does the Jagananna Thodu scheme function?

The Jagananna Thodu scheme was first introduced on November 25, 2020. The scheme was split into two phases where a cumulative of Rs. 905 crores have been transferred to 9.05 lakh small businessmen and street vendors in both phases. The first phase witnessed the disbursement of Rs. 535 crore to the bank accounts of 5.35 lakh beneficiaries.

Under the scheme, the bank will provide loans to all members and the interest amount will be taken care of by the government by reimbursing the amount to the beneficiaries. Under phase 1 the Government of Andhra Pradesh is committed to reimburse Rs. 29.42 crore and under phase 2 Rs. 20.35 per annum, thus summing up to Rs. 49.77 crore interest incurred and reimbursed. 

Andhra Pradesh's fight against COVID-19

Andhra Pradesh is standing on a total caseload of 17.6 lakh, with 11,552 lives lost and 16.4 lakh recoveries. In the last 24 hours, the state reported 4,872 new cases along with 13,702 recoveries and 86 fatalities.

Input- ANI

Image Source- ANI