Maha waives Rs 34,000-cr farm loans

Shiv Kumar

Tribune News Service

Mumbai, June 24

Close on the heels of debt relief for Uttar Pradesh, Punjab and Karnataka farmers, the Maharashtra Government today announced a farm loan waiver scheme amounting to Rs 34,000 crore.

Chief Minister Devendra Fadnavis, addressing a press conference, announced the Chhatrapati Shivaji Maharaj Krishi Samman Yojana under which loans of up to Rs 1.5 lakh taken by individual farmers before July 2016 would be waived.

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“The loan waiver will cost the state government Rs 34,000 crore and benefit as many as 89 lakh farmers in the state,” said Fadnavis.

Farmers who had repaid their loans regularly in the past would receive a payback of 25 per cent as incentive. “We would like to ensure that farmers who have regularly repaid their loans also enjoy the benefits,” he said. The details of the scheme would be made available shortly. The Chief Minister admitted that the loan waiver would add to the state’s financial burden. “We will come out with a programme to curtail expenses. Our ministers and MLAs will give up a month’s salary to support the loan waiver programme,” said Fadnavis.

“Maharashtra has announced the biggest loan waiver package in the country. The amount waived and the number of beneficiaries is bigger as compared to UP, Karnataka and Punjab,” said Revenue Minister Chandrakant Patil. Earlier, the state government had mulled waiving loans up to Rs 1 lakh taken by farmers. However, this was opposed by farmer groups and the Opposition.

Fadnavis had met with Nationalist Congress Party chief Sharad Pawar in New Delhi on Friday as part of an effort to build a consensus among political parties before announcing the loan waiver today.