Waiver not for allied activities
Regulations are aimed at cutting down the financial burden for the government
Hyderabad: After much deliberation between Telangana Chief Minister K. Chandrasekhar Rao and bankers, it was proposed to extend the farm loan waiver scheme to only loans availed between June 1, 2013 and June 1, 2014. It should be extended only to crop loans and not to loans on agri-allied activities such as poultry, livestock etc. Besides, loans availed by pledging gold should not be considered.
The regulations are aimed at cutting down the financial burden for the government from over Rs 19,000 crore to Rs 10,000 crore.
Sources said that the banks had submitted a report stating that farmers owed a total of Rs 40,994 crore to banks.
If only loans of up to rs 1 lakh were waived, it would amount to rs 26,020 crore. If only crop loans are taken into account, the farmers owe Rs 20,378 crore. If only loans up to Rs 1 lakh are considered, it amounts to Rs 19,600 crore.
Bankers informed officials that, if the above conditions were applied, the burden would come down to Rs 10,000 crore.
However, a large number of farmers in rural areas take loans by pledging gold. They owe Rs 3,800 crore. It will be Rs 3,600 crore if only loans up to Rs 1 lakh are considered. These farmers will not be part of the scheme if gold loans are not considered.
Even with regard to crop loans, most of the farmers have arrears ranging from two years to five years. If only last year (2013-14) is considered, majority of the farmers will lose the benefit.
Though both bankers and government officials maintained utmost secrecy after the meeting, the presence of the finance minister in the meeting gave enough clues to the media waiting outside that certain regulations were considered and the final decision had to be taken by the Chief Minister.
“All these conditions came up for discussion but the final decision will be taken by the CM after discussing in the Cabinet,” Mr Rajendar said.
He added that the bankers had been asked to prepare a comprehensive report over the issue. “The CM will hold another meeting next week and take a final decision on the loan waiver scheme,” Mr Rajendar said.