Quite hopeful that the Reserve Bank of India will give a green signal to the rescheduling of crop loans in the 575 mandals hit by natural calamities last year, Andhra Pradesh government is exploring all options to fulfil its loan waiver commitment in the rest of about 80 mandals.
“We are examining different options. Securitisation of assets such as land, properties, revenue of government organisations and raise loans against them to fulfil our commitments. The government is not interested in selling land or properties as their value will only appreciate with time,” sources said.
One of the decisions taken to mop up resources is to auction the seized red sanders which is expected to yield Rs.1,600 crore. The State also urged the Centre to release Rs.7,000 crore due to it under the Central Sales Tax for the last three years, they said.
“We are hoping the RBI directive on re-scheduling of crop loans will come during this week and this will facilitate farmers to get fresh loans for the Kharif season in 575 mandals. That will leave about 80 odd mandals where Government will have to step in immediately and repay the bank loans on behalf of farmers,” said Government sources.
The crop loan rescheduling will come with moratorium for the first year and the repayment of loans with higher interest rate of 10 per cent over the next four to seven years. This will give time for the government to make repayments on behalf of the farmers in phases.
