Debt relief for loans taken from government agencies

Thiruvananthapuram: Kerala Cabinet on Friday approved a one-time debt relief scheme aimed to help low income groups facing revenue recovery for loans taken from various government agencies.

The scheme, which will cover persons who have paid back twice the principal, will include interest concessions.

Chief Minister Pinarai Vijayan proposed the scheme in view of several memorandums received by him.

The scheme will benefit about 10000 families. The government will have to bear a liability of Rs. 40 crore to carry out the scheme.

The Finance Department will be the nodal agency for the scheme which will cover various housing loans provided by the Revenue Department, State House Board and government corporations.

Outstanding portion of loans of less than Rs. 5 lakhs will be written off if the loanee has already paid back double the amount of loan by way of repayment of principal, interest and penal interest. The loans of persons who have paid one and half times the principal will be restructured with reduction in interest liabilities. The outstanding amount will have to be repaid in two years.

An official release said that financial institutions would take decisions on applications for debt relief within one month.  No document other than the application would be required.

The Cabinet also approved the guidelines for granting bonus to workers of public sector units for 2015-16. Tenth Pay Commission recommendations would be made applicable to the permanent staff of Vastuvidya Gurukulam under the Culture Department.

Additional Director General of Police Ananthakrishnan was appointed as Transport Commissioner in place of Tomin J. Thanchankary. IAS Officer A. Shajahan has been given additional charge of Commissioner for Rural Development.