First phase of loan waiver likely by September end

AP govt wants to pay between Rs 7.000 and Rs 10,000 crore in the first phase

Update: 2014-09-07 06:44 GMT
AP Chief Minister N. Chandrababu Naidu. (Photo: DC)

Hyderabad: The AP government has decided to pay the first phase of farm loans to banks under the waiver of farm loans by the end of September or the middle of next month.

The decision was taken following AP Chief Minister N, Chandrababu Naidu’s meeting with the resource mobilisation committee on Saturday at his camp office at Lake View guesthouse.

According to sources, the government wants to pay between Rs 7.000 crore and Rs 10,000 crore in the first phase. If the farmers have already repaid their bank loans, the government will pay them directly. If the loans have not been cleared, the government will pay the banks.

Resource committee chief and TD MP Y. Sujana Chowdary gave a powerpoint presentation on the sources of mobilising funds.

While Rs 5,000 crore was allotted in the state Budget for loan waiver, auction of red sanders could earn about Rs 8,000 crore. The Centre is likely to give Rs 16,000 crore to fill the deficit in the state Budget.

The meeting also discussed other measures to raise monies.

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