Acknowledging that farm loan waiver is not a remedy (to the crisis affecting the agricultural sector) nor will it prevent farmers’ suicide, Chief Minister H.D. Kumaraswamy on Tuesday said he, however, was going ahead with the scheme in the light of the drought-like conditions that prevailed in the State in the last three years.
During an interaction with the media here, he said the heads of nationalised banks would be called for a meeting with the State government to discuss the issue in the next two days while the Cabinet would be convened to decide the schedule of the budget session of the State legislature, likely to be held in the first or second week of July.
“Loan waiver is an adventure. It should reach the farmers and not misused by middlemen, and I will not go back on my promise of loan waiver,” he said. “The method will be scientific. I have to raise resources for the waiver and also plug leakages. The waiver should be implemented by adhering to the Fiscal Responsibility Act and financial discipline should be maintained. All this will require time,” he added.
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He allayed concerns that implementation of loan waiver will affect schemes and projects in other departments, and also development works in Bengaluru. In fact, the Chief Minister said the waiver scheme would largely benefit farmers of north Karnataka where farm loans were higher, with Belagavi (₹7,000 crore), Bagalkot (₹6,000 crore), and Vijayapura (₹6,000) topping the list. He also said that total quantum of loans in Mandya and Hassan districts was ₹1,500 crore and ₹1,300 crore respectively.
On the appeal to the Centre seeking 50% financial assistance to the State’s loan-waiver scheme, Mr. Kumaraswamy said, “The Central government has allowed nationalised banks to raise bonds worth ₹2 lakh crore. A 25% of this sum can be kept aside not only for Karnataka farmers but also for other States that are planning loan waiver.” He further said, “I have only appealed to the Prime Minister and I do not have any expectation that it will be implemented. It is just an effort.”
On the Cauvery Water Management Authority, he said the State government had urged the Centre to allow a discussion in Parliament on the authority within six months.
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Taking Air India helps save money: CM
The two visits to Delhi by Mr. Kumaraswamy after he took charge have been on the national carrier, Air India. According to Mr. Kumaraswamy, while a round trip to Delhi in Air India may cost about ₹1lakh, the trip in a private jet would cost between ₹38 lakh and ₹40 lakh.
“Even Andhra Pradesh Chief Minister N. Chandrababu Naidu and West Bengal Chief Minister Mamata Banerjee enquired about it in Delhi. I will continue to do so,” he added.