Telangana: Don’t Use Crop Loan Waiver to Clear Other Loans, Bhatti Tells Bankers
Hyderabad: Deputy Chief Minister Mallu Bhatti Vikramarka has issued strict instructions to bankers that funds released for the crop loan waiver must be used exclusively for that purpose and should not be allocated to clear any other loan. He emphasised that farmers should not be inconvenienced, adding that the government would take action against banks that divert crop loan waiver amounts.
Speaking at a meeting with bankers on the farmers' loan waiver at Praja Bhavan on Thursday, along with agriculture minister Tummala Nageswara Rao, Bhatti said that Rs 31,000 crore would be released before the end of August towards the loan waiver for farmers. He said that over Rs 6,000 crore was released at 4 pm on Thursday for over 11 lakh farmers who owe banks up to Rs 1 lakh each.
The second instalment will be released later this month to cover farmers with loans up to Rs 1.5 lakh each, followed by the release of funds for farmers with loans up to Rs 2 lakh by August 15.
For farmers with loans exceeding Rs 2 lakh, bankers are instructed to recover the excess amount and utilise the Rs 2 lakh released by the government to ensure no farmer owes money. Bhatti described the loan waiver as a historic decision, noting that no other state government had waived farmers' loans to the tune of Rs 31,000 crore in one go.
Bhatti recalled that before coming to power, A. Revanth Reddy, as TPCC president, and he (Bhatti) as the Congress Legislature Party leader, went into the election campaign after signing the loan waiver guarantee. "We are now bound by our word," Bhatti said.
The state government will deposit Rs 31,000 crore into 40 lakh bank accounts, a first in Indian banking history. Even in the corporate banking sector, such a large recovery has never been achieved in one go, Bhatti pointed out.
He noted that the state government’s decision was a significant incentive for the banking sector and said that bankers, like farmers, should celebrate the crop loan waiver. Bhatti, who is also the finance minister, disclosed that the state government will introduce more programmes for the development of the agriculture sector, which contributes 16.5 per cent to the state's GDP (GSDP) and supports over 45 per cent of the population.
Bhatti directed bankers to immediately sanction loans to farmers for their future requirements after crediting the funds sanctioned under the crop loan waiver. He emphasised that there should be no apathy in sanctioning loans to farmers and suggested that the lead bank should take a proactive role. He also encouraged bankers to organise celebrations at their premises in recognition of the farmers’ loan waiver and to provide extensive publicity for the programme.
