The TRS government issued orders on Tuesday declaring that crop loans up to ` 1 lakh have been waived. According to a release from the Chief Minister’s Office, orders have been issued in this regard.
The TRS included in its election manifesto that the crop loans up to ` 1 lakh would be waived. Seventy days after assuming the office, Chief Minister K Chandrasekhar Rao signed the file relating to crop loan waiver. The State Cabinet, which met here on Monday, approved the crop loan waiver and orders were issued on Tuesday. However, the official orders were not placed yet on the State government’s portal. But sources said the financial burden on the State government for crop loan waiver would be around ` 19,000 crore. Of which, the immediate financial burden in this financial year would be around ` 12,000 crore. The Reserve Bank of India (RBI) rescheduled crop loans in around 100 mandals in three districts, Adilabad, Medak and Ranga Reddy, where the crop loss is below 50%.
The State government wanted rescheduling of loans in around 415 mandals. If the RBI rescheduled the loans, the State government would pay the amount in three years to RBI on behalf of the farmers. As several mandals in the State are not included in the reschedule plans of RBI, the government had to pay the same amount this year to bankers. “The State government will pay the amount to bankers on behalf of farmers. We will not allow bankers to increase their non-performing assets (NPA),” an official said.
The government is still working out modalities on how to pay the money to bankers on behalf of farmers. A team of officials from the finance department would meet the RBI authorities once again this week. How the new State is planning to mobilise the required finances to repay the loans to bankers remains to be seen.
Chief Minister Rao would take a final call on this, official sources said. Whether the government issue bonds or sell away a portion of lands in Hyderabad or take any other way remained to be seen. “We are still working out ways and means,” an official said.
Meanwhile, the State government has sanctioned input subsidy to farmers who lost their crops due to natural calamities from 2009-10 to 2014-15. Two separate orders were issued on Tuesday. Around ` 75.85 crore was sanctioned to farmers who lost crops due to hailstorms and heavy rains and ` 404 crore sanctioned as input subsidy to farmers who lost crops due to heavy rains, floods, drought and cyclones.
This input subsidy was in addition to the crop loan waiver.
Source: The New Indian Express