Guidelines for crop loan waiver to be issued in a couple of days, says Minister

Though initial estimates suggest that implementation of crop loan waiver will cost  ₹31,000 crore, a senior Minister said that the scheme would cost over and above the estimates

Updated - July 10, 2024 07:58 am IST

Published - July 09, 2024 08:13 pm IST - HYDERABAD

Efforts are on to ensure that no genuine farmer is left out of the benefit. File photo

Efforts are on to ensure that no genuine farmer is left out of the benefit. File photo

The guidelines for the effective implementation of the crop loan waiver upto ₹2 lakh will be released in a couple of days.

The State government has intensified efforts to finalise the guidelines to ensure that no genuine farmer is left out of the benefit. Though the initial estimates suggested that implementation of the crop loan waiver will cost ₹31,000 crore, a senior Minister said the scheme would cost over and above the estimates going by the information gathered from the grass root level. “Guidelines are being evolved in such a manner that genuine farmers who could miss out the opportunity because of the previous rules will also be covered under crop loan waiver,” he said.

The government has started raising resources required for implementation of crop loan waiver at one go. Accordingly, the government has so far pooled up close to ₹9,000 crore for the purpose. Coupled with this was the proposed market borrowings of around ₹10,000 crore to be raised by August 15, the deadline for the implementation of loan waiver.

Officials admitted that the government is faced with a severe strain on finances because of the requirement of huge amounts for repayment of interest and principal of the ₹6.86 lakh crore loans raised by the previous BRS government and the expenditure on account of implementation of spree of welfare schemes. “We are confident of raising the required resources in spite of financial constraints,” Revenue Minister Ponguleti Srinivas Reddy said, adding that in addition to minimising expenditure, the government had focussed attention on curbing wasteful expenditure to pool up resources.

The government has simultaneously decided to elicit opinion of the stakeholders on the implementation of Rythu Bharosa, the farmers’ investment support scheme, and the exercise in this direction will start in Khammam district from Wednesday. “We will seek the views of stakeholders, association leaders as well as intellectuals,” the Minister said.

He expressed concern that payments under the Rythu Bandhu of the previous government were made to ineligible farmers. “The extent is sizeable more than five lakh acres. Rythu Bandhu has been paid to land acquired by the government for infrastructure projects, land converted to other uses and also to the lands acquired by the NHAI for highways,” he said.

The Cabinet sub-committee chaired by Deputy Chief Minister Mallu Bhatti Vikramarka would factor in several issues while finalising its recommendations based on public opinion. “Questions are being raised as to why well-to-do farmers who can withstand losses should be paid the amounts?” he asked.

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