Odisha CM launches Interest Subvention for SHGs

Bhubaneswar: Odisha Chief Minister Naveen Patnaik today launched the Interest Subvention Program for around 2.5 lakh Self Help Groups (SHGs) operating under the Mission Shakti Department in the state.

Under the initiative, Rs 125 crore interest on loans taken by the Self Help Groups will be reimbursed, which will make the loans zero interest effectively.

Over the next five years, Mission Shakti has provisioned to provide interest subvention benefits amounting to Rs 1200 crore to SHGs.

The increase in interest subvention benefit shall certainly boost the credit flow to SHGs, increase the average loan size and reduce the NPA position. Over the next five years, funds amounting to Rs. 50,000 crore are targeted to be disbursed to SHGs across 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.”