Status Note on YSR “0” Vaddi :

Guidelines for Implementation of YSR “0” Vaddi for the FY 2019-20.

The Government of Andhra Pradesh with a view to encourage better

repayment culture and to reduce interest burden on the Urban poor on
SHG Bank loans decided to continue the interest Subvention programme,
rechristened as “YSR “0” Vaddi.

Background:

 Honb’le Chief Minister of AP, during “Praja Sankalpa Yatra” interacted

with the SHG women in the state. SHG women informed their debt
burden to Honb’le Chief Minister during interactions. Honb’le CM took a
decision to reimburse the debt availed by the SHGs in the state of Andhra
Pradesh directly in four installments.
 This measure will improve and reinforce the Women Empowerment efforts
and strengthen the economic development of 2.30 lakhs poor SHG women
in urban areas.
 Hon’ble Finance Minister during budget speech on 12.07.2019 for the
financial year 2019-20 announced that “As a part of implementation of
Navaratnalu, through the YSR Aasara program, it is proposed to
reimburse the entire outstanding Bank Loan as on 11 April 2019 of
Rs.5627.54 crores, in four installments starting from next year”.
 It is proposed to pay the interest portion for the FY 2019-20 on the bank
loan amount outstanding as on 11.04.2019 freezed under YSR Aasara
both Rural and Urban areas.

Operational guidelines

Eligibility:

 The “YSR “0” Vaddi will be applicable for all outstanding SHG Bank
loans as on 11.04.2019 for the FY 2019-20.

 All SHGs in urban areas are eligible under the scheme up to a bank
loan outstanding of Rs.5.00 Lakhs.

 SHG loan accounts declared as Non Performing Assets as on

31.03.2019 as per the database maintained by MEPMA are not be
eligible for YSR “0” Vaddi.
Implementation process:

 For the implementation of YSR “0” Vaddi, MEPMA has obtained

SHG wise Bank Loan outstanding details as on 11.04.2019 from all
banks operating in the state of Andhra Pradesh through SLBC of
AP.
 The correctness of the data was reconciled at field level by the
bank branch manager and Self Help Group concerned and was
uploaded in the MEPMA website by the field staff.
 The amount of eligible YSR “0” Vaddi will be calculated on the
outstanding bank loan amount up to Rs.5.00 lakhs as on
11.04.2019 multiplied by rate of interest charged by individual
bank excluding penal interest for a period of one year.
 The YSR “0” Vaddi will be credited into the respective loan
accounts of SHGs.
 Letter addressed by Hon’ble CM to SHGs along with receipt
containing details of YSR “0” Vaddi paid by the Government and
confirmed by the Branch Manager shall be handed over to the
groups in a function organized at Slum/Ward/ULB/constituency
level.
 The Community Organizer in Urban should record the details of
“YSR “0” Vaddi received by the group in Minutes book of the SHGs.

Awareness to SHGs:

 SHG Meetings at Slum Level Federation (SLF) level have been conducted
by the Project staff of MEPMA to explain the modalities of the scheme and
implementation process.

Budget Estimates for the FY 2019-20:

 It is estimated that an amount of Rs.648.83 Cr pertaining to 1,66,727

SHGs on the bank loan outstanding balance of Rs. 5,190.66 Cr as on
11.04.2019 up to an amount of Rs. 5 lakhs are required for
implementation of “YSR “0” Vaddi for the FY 2019-2020 for Urban SHGs
and monthly requirement would be Rs.54 Crores.

 The budget requirement for payment of “YSR “0” Vaddi for Six months
i.e., from April 2019 to September 2019 is estimated at Rs.324 Cr for
urban SHGs.

Budge Estimates Provision:

 An allocation of Rs.648.00 Crores was made provision in the budget for

the FY 2019-20 for implementation of YSR “0” Vaddi scheme for Urban
SHGs.
Release of YSR “0” Vaddi Funds to SHGs under DBT mode through CFMS:

 YSR “0” Vaddi funds will be released through CFMS mode directly
from PD account to concern SHG loan account.

 For the purpose of one-rupee test check of payment under DBT

mode through CFMS, it is proposed to release an amount of
Rs.1.53 lakhs to eligible SHGs under YSR “0” Vaddi scheme.

 After due verification and successful confirmation of the one rupee

test check of the payments by the CMM/TMC, the amount will be
released for the period April 2019 – Sep 2019 i.e for 6 months of
the FY 2019-20 towards YSR “0” Vaddi to the respective loan
accounts of the SHGs under DBT mode through CFMS.

Estimated YSR "0" Vaddi for the FY 2019-20 up to Rs.5 Lakhs

SHG bank Loan outstanding - Urban
Rs in Crores
loan
Loan O/s
Sl. outstanding Total Financial
District Name up to 5 lakhs
No SHGs As on commitment
As on11.04. 2019
11.04.2019
1 Ananthapur 13203 368.99 46.12
2 Chittoor 11049 411.40 51.42
3 East Godavari 16410 549.75 68.72
4 Guntur 17161 516.22 64.53
5 GVMC 23370 650.03 81.25
6 Kadapa 11724 387.86 48.48
7 Krishna 7915 321.78 40.22
8 Kurnool 14801 380.36 47.55
9 Nellore 9761 298.07 37.26
10 Prakasam 8111 257.39 32.17
11 Srikakulam 4823 147.47 18.43
12 Visakhapatnam 1887 58.01 7.25
13 Vizianagaram 6946 212.08 26.51
14 VMC 10256 315.02 39.38
15 West Godavari 9310 316.23 39.53
Total 166727 5190.66 648.83