Rs 200 crores package for 20,000 ADSs for fighting back Covid-19

Posted on Monday, June 28, 2021

It is decided to give Rs 1 lakh each to every Kudumbashree ADS for supporting the NHGs, that are in crisis due to covid-19 and to fight back the pandemic. ADS (Area Development Society), the ward level federation of the NHGs in Kudumbashree three tier community system would give the amount to the NHGs based on the risk factors and eligibility criteria. The NHGs would use this as a Revolving Fund. The NHGs may make use of the same for emergency needs, medical needs and to retrieve livelihood opportunities. The Government had given in principle approval for the Special Package of Rs 200 crores for the 20,000 ADSs in Kerala, for this. The  Oorusamithis of Attappady will also get this assistance.  

Kudumbashree community network is taking greater efforts to convey the message to the society, that each and everyone  should participate in the fight against covid-19. These concepts are communicated to maximum people and thereby Kudumbashree aims that a strong self defense against covid-19 is created.On realising that it is needed to extend support to many families who are struggling due to the crisis of covid-19, Kudumbashree had presented a few project proposals before the Government regarding the same. As per the decision taken at the meeting of the Honorable Chief Minister of Kerala held on 14 May 2021, three projects put forward have got approval. The other projects that got approval are explained as follows.

1. A total of 25.17 lakh NHG members of 2.30 lakh NHGs had availed the Interest Free Loan of Rs 1917.55 crores as per ‘Chief Minister's Helping Hand Loan Scheme’, during the first wave of Covid-19 pandemic. Rs 165 crores, the first installment of the interest subsidy was received from the Government and the same was provided to the NHG members during the month of March. The interest subsidy of Rs 93 crores for the second year is to be received by March 2022. A decision has been taken to give this in advance, as a support during COVID.  The proposal for the same was given to the Finance Department and the approval was received for the same. The NHGs would be provided with the interest subsidy very soon.

2. During the floods, 2,02,789 members of 30,267 NHGs, who were affected adversely by the floods, had availed Interest Free Loan of Rs 1794.02 crores as per the ‘Resurgent Kerala Loan Scheme’. The subsidy of this Interest Free loan was provided from the Chief Minister's Distress Relief Fund. During the first year, Rs 131 crores was provided to the Kudumbashree members and during the second year, Rs 129.87 crores was provided as Interest Subsidy. It is aimed to provide the subsidy of Rs 75.16 crores for the third year which is to be given by the end of this financial year, in advance. The proposal regarding the same is submitted to the Finance Department. Subsidy would be provided on getting the approval for the same.

Kudumbashree, is the poverty eradication mission of Kerala and members are mostly from poor economic backgrounds. Government took the decision to implement this project through Kudumbashree aiming at extending a helping hand to the needy during the crisis of covid-19. The effective utilization of this amount could be ensured through Kudumbashree that has the best community network. The proposals and the draft guidelines regarding this project (Rs 1 lakh each to all ADS) had already been submitted to the Government. It is expected that we would be able to provide this amount to the ADSs, once the Government Order regarding the same is received.

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Rs 200 crores package for 20,000 ADSs for fighting back Covid-19