Justifying Government’s decision of waiving off loan borrowed by backward communities and minorities from various Corporations of the government, S.E. Basavaraj, Chairman of Karnataka State Maharshi Valmiki Schedule Tribe Development Corporation, feels that loan waiver should not become a regular practice as it could encourage people to misuse the facility.

Addressing presspersons here on Thursday, he said that the Congress government had waived off loan taken by beneficiaries though the Corporation because State had earlier faced natural calamities such as drought and flood, due to which, the poor beneficiaries had difficulty in repaying the loan.

“However, I personally feel the loan wavier should not become a regular practice as it discourages people from repaying loan”, he said.

Mr. Basavaraj informed that after Congress coming to power, the Chief Minister, Siddaramaiah announced to waive off the loan to the tune of Rs. 68 crore which was benefited to over 40,000 beneficiaries in the State.

With regard to the loan recovery for the current years, he said that already 25 per cent loan had been recovered from various beneficiaries in the State.

Mr. Basavaraj however admitted that the functioning of the Corporation was slow and not upto the requirement because of the shortage of the Staff.

He said that though seven years ago, the Corporation separated from Ambedkar Development Corporation, however, still does not have its own offices and adequate staff in most of the district.

“We have offices only in 12 districts, in remaining districts, we are working in Ambedkar Development Corporation with their staff”, he said.

Mr. Basavaraj said that a proposal would be given to the State to set up separate offices for the Corporation in remaining 18 districts and recruit some 210 staff to meet the demand and for the smoother functioning of the Corporation.

He said that the Corporation was mulling to provide borewell under Ganga Kalyan scheme to people of ST category to those who have bought dry-land with the financial assistance of the Corporation.

“If borewell is provided, then the beneficiary can at least supply water to the crop and read a good profit which will help him to repay the loan”, Mr. Basavaraj said.

He also said that the Corporation was contemplating to introduce at least 2­3 more schemes for the development of the ST communities, for which, a meeting of the experts would be convened to prepare the plan.

To a question, he said that some 50 communities and 42 lakh people fall under the ST category in the State.