HYDERABAD: The steps taken by the previous Rosaiah regime in reining in the micro financing institutions (MFIs) may not be followed up soon by the Kiran Kumar Reddy government. As a result, the Bill on MFIs, which is said to be opposed by some Congress legislators as well as the main opposition TDP, is unlikely to be passed easily. It is slated to come up for discussion in the Assembly on Tuesday.
According to sources, while the TDP has already written to deputy speaker Nadendla Manohar urging him to refer the Bill to a select committee, several ruling party members including chief whip M Bhatti Vikramarka and whip Kondru Murali have raised objections over the proposed legislation on the grounds that it would leave rural women more dependent on private money lenders.
Some Congress MLAs also expressed their reservations on the Bill stating that it would lead to chaos in villages as poor people would end up with no funds. Concerned over the impending financial crisis in rural areas, these MLAs have represented the matter to rural development minister Manikya Vara Prasad, who in turn asked them to convince self-help groups minister Sunitha Laxma Reddy to make appropriate changes in the proposed Bill.
"We are facing the wrath of SHGs who are hit by the MFIs' decision to stop fresh lending. I have asked my district minister to oppose this in the cabinet meeting," said an MLA from Guntur which has the highest number of MFIs. But another MLA who is in favour of the legislation said that opposition to the Bill is being drummed by the MFIs themselves. "They have lobbied with the MLAs," he said.
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