Devendra Fadnavis writes off Rs 34,000 cr farm loans

Amidst the ongoing sowing operation, Maharashtra Chief Minister Devendra Fadnavis on Saturday announced the promised crop loan waiver worth Rs 34,000 crore for 89 lakh farmers in the state, with 100 per cent repayment exemption for loans of up to Rs 1.5 lakh.

The waiver, which Fadnavis described as “historic and unprecedented” is expected to help all debt-ridden farmers, particularly small and marginal ones. Mid-term loans of farmers who have rescheduled repayment will also be waived, Fadnavis announced.

The decision, which was cleared by the state cabinet after holding discussions with various political parties and farmers’ organisations, will bring back 40 lakh farmers into the institutional credit stream, making them eligible for fresh loans.

However, farmers paying income tax, all MPs, legislators, central and state government employees, except class IV category, won’t be eligible for the loan waiver.

Fadnavis said the government will tie up with banks to work out instalment schemes for loan repayment. To incentivise timely repayments, the government will pay subsidy of 25 per cent or up to Rs 25,000 to farmers who are regular with their payments.

The cut-off date for eligibility will be June 30, 2016 and not June 30, 2017, as demanded by various farmers’ organizations.

However, the loan waiver …read more