Shimla, Dec 21,
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu announced during the state assembly’s Saturday session that the government is exploring a plan to waive loans under ₹10 lakh for small businesses through a one-time settlement (OTS) scheme in the Kangra Cooperative Bank.
Responding to a question from legislator Satpal Singh Satti during the assembly’s question hour, the Chief Minister noted that the OTS scheme for loans exceeding ₹10 lakh had been introduced during the tenure of the previous BJP government on September 9, 2022. He stressed the need to include non-performing assets (NPAs) of amounts less than ₹10 lakh under the OTS policy, as many borrowers had either passed away or missed the opportunity due to lack of awareness.
Clarifying the government’s stance, the Chief Minister stated that no new loan waiver policy has been implemented. Instead, the OTS scheme is being continued to improve the financial stability of the Kangra Cooperative Bank. He also mentioned that Satpal Raizada, a former BJP legislator, had availed benefits under the scheme and acknowledged the concerns raised by Sati.
Assembly Speaker Kuldeep Singh Pathania proposed extending the OTS initiative to include other institutions like the State Cooperative Bank and the Land and Mortgage Bank. The Chief Minister assured the assembly that the suggestion would be reviewed in accordance with the policy framework.
Highlighting the gravity of the issue, Satpal Singh Sati revealed that approximately 7,461 accounts were marked as NPAs in the Kangra Cooperative Bank, with around 5,000 borrowers already applying under the scheme. He urged the government to include small and medium enterprises with unpaid loans of ₹2-3 lakh, emphasizing the relief it could bring to struggling entrepreneurs.
Chief Minister Sukhu shared that the Kangra Cooperative Bank’s NPA amount had reached ₹198 crore, underlining the critical role the OTS scheme could play in mitigating the financial challenges faced by the institution and its borrowers.
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