Telangana State to sell costly land for loan waiver sop

Hyderabad: The Telangana government is planning to sell costly land in the city to mobilise funds for its crop loan waiver scheme. The Reserve Bank of India has recently made it clear that it will allow rescheduling of loans in only around 100 mandals in the three districts of Ranga Reddy, Medak and Adilabad.

The Telangana Cabinet, however, has recently approved waiver of all types of agricultural loans up to Rs 1 lakh, totaling nearly Rs 19,000 crore. The RBI’s offer is worth Rs 4,000 crore and the Telangana government thus has to raise the remaining Rs 15,000 crore to extend the crop loan waiver to farmers.

The government has thus started exploring options of how to mobilise the Rs 15,000 crore within a short span and according to official sources, sale of costly land in and around the city is the most preferred option.

The Telangana government is said to have been inspired by the decision of the Andhra Pradesh government to auction red sanders to mobilise funds for its crop loan waiver scheme. The government is of the view that it is impossible to mobilise Rs 15,000 crore immediately for the new state and sale of prime properties alone would enable it to tide over the present crisis.

The Telangana government has been under tremendous pressure from farmers who are taking to the streets, demanding early waiver of loans and issue of fresh loans as promised in the TRS election manifesto.

Contingency steps

• The Telangana State government has to raise Rs 15,000 crore to extend the crop loan waiver to farmers
• The government is actively considering taking over 24 acre of prime land belonging to DBR Mills at Lower Tank Bund and raising Rs 1,000 crore from its sale