Tamil Nadu Budget 2021

Crop loan waiver, agricultural jewel loans put on hold

In view of several irregularities found in the implementation of the crop loan waiver and agricultural jewel loan schemes announced by the previous AIADMK government, the DMK government on Friday said detailed inquiries would be taken up in these schemes before they are implemented further.

Presenting the revised Budget for 2021-22, Finance Minister Palanivel Thiaga Rajan said: “Many irregularities have been found in the implementation of the crop loan waiver scheme. In certain districts, a suspiciously large amount of loans was disbursed just prior to the announcement of the scheme. In some cases, societies retained loan collections and disbursed them again, which amounts to evergreening of the portfolio.”

There have been violations at the individual beneficiary level, including the disbursal of loans without crop details as per the adangal and loan sanction in excess of the cropped area or in excess of the approved scale of finance. At the co-operative-society level, some societies have disbursed loans without obtaining sanctions or without the release of cash credit from district co-operative credit banks.

Quality issues

In the case of agricultural jewel loans, it was found that jewellery was not valued properly and was short in weight or poor in quality. He said: “Writing off such loans amounts to rewarding wrongdoers. Hence, a detailed inquiry is required before the scheme is fully implemented.”

Preliminary assessment has shown that the situation regarding jewel loans is similar. “Hence, a detailed assessment of the jewel loans disbursed is required before the waiver is taken up, so that eligible beneficiaries benefit and wrongdoers are not rewarded,” Mr. Rajan said.

The previous AIADMK government had announced the crop loan waiver scheme. The Finance Minister said: “That government left us with the onerous legacy of meeting the cost of the scheme, estimated at ₹12,110.74 crore. In the revised Budget estimates 2021-22, a provision of ₹4,803.95 crore has been made for the crop loan waiver scheme.”

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Printable version | Dec 8, 2021 9:52:45 PM | https://www.thehindu.com/news/national/tamil-nadu/crop-loan-waiver-agricultural-jewel-loans-put-on-hold/article35905851.ece

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