Mumbai: The Maharashtra government seems to be trying to reduce by almost Rs 10,000-12,000 crore, its much-feted Rs 34,000 crore farm loan waiver package announced last month.
The government had announced the loan waiver scheme to placate agitating farmers. However, only farmers who had borrowed loans between June 1, 2012 and June 30, 2016 will benefit from the scheme.
The waiver will not include restructured loans taken, by 10-12 lakh farmers, outside the cut-off period, said finance ministry sources.
The Maharashtra government has taken a decision of waiving off loans of farmers taken from April 1, 2012 to June 30, 2016.
The Maharashtra government claims that almost 34 lakh farmers who failed to repay their loans in this period would benefit from the waiver.
But there is a catch. There are around 10 to 12 lakh farmers who got their loans restructured in the last two years. These loans have a deadline of June 30, 2017. As the government has decided to waive off loans only till June 30, 2016, these restructured loans are unlikely to be waived off. These loans amount to almost Rs 10,000 crore. Therefore, the government’s claims to waive off Rs 34,000 crore worth of loans is likely to come down by around Rs 10,000 crore.
Farmers’ organisations have been demanding to extend the deadline of the loan waiver scheme for loans taken till June 30, 2017. However, the government has cited National Bank for Agriculture and Rural Development’s (NABARD) objection to waive off current loans and decided to waive off loans only till June 30, 2016.
“We were objecting the criteria from day one. Government was trying to get as many as farmers out of the scheme. This mess of restructured loan is one of the proofs of it,” said farmers leader and Member of Parliament, Raju Shetti.
