Rajasthan announces loan waiver for farmers; to cost Rs 8,000 crore

Yash Goyal

Jaipur, February 18

Rajasthan Chief Minister Vasundhara Raje on Monday announced a one-time crop loan waiver of up to Rs 50,000 for small and marginal farmers, and land revenue exemption.

Presenting the budget on Monday, Chief Minister Vasundhara Raje, who also holds the finance portfolio in the state, announced that the loan waiver would applicable to overdue and outstanding category of short loans taken by marginal farmers from cooperative banks until September 17, 2017.

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“The scheme would cost the exchequer Rs 8,000 crore and will benefit about 20 lakh peasants,” Raje told the Rajasthan Legislative Assembly here.

The chief minister also announced a debt relief commission for farmers—called the Rajasthan State Farmer Loan Relief Commission—that will work as a permanent institution. Farmers would be able to get relief on merit basis after presenting their case before the commission.

She also announced land revenue (lagan) exemption that would benefit almost 40-50 lakh farmers.

To promote agro-based industries and services, Raje announced to increase maximum limit of interest subsidy in a year from Rs 5 lakh to Rs 7.5 lakh.

Amid protests from Opposition, Raje claimed that budget proposal would provide relief to the tune of Rs. 650 crore to major sectors such as industry, housing, stamp duty and registration. 

The government would provide a compensation interest subsidy of Rs.384 crore and Rs.160 crore on short-term crop loans to farmers through Central Cooperative Banks. 

Interest subsidy for women, disabled, SC/ST and entrepreneurs who are bonafide residents of Rajasthan and are up to 40 years of age was enhanced to 6 per cent from 5 per cent.

Infrastructure support subsidy with maximum limit of Rs 5 crore was also proposed for first unit established in most backward area investing more than Rs 50 crore under each sector of agro-processing and agri-marketing, bio-technology and IT sector.

In rural areas, valuation of agriculture land up to 1,000 sq metre will be done at the rate of agriculture land instead of the rate of residential land to help farmers sell or buy the land for agriculture purposes.

The chief minister also announced to allot 2 lakh agriculture electricity connections which were pending till January 2012.

Other announcements for the agriculture sector included interest subsidy of Rs 384 crore for short-term crop loan to farmers through central cooperative banks, increase in the capacity for storage of additional 5 lakh metric tonne at the cost of Rs 350 crore for the produce procured at MSP.

Besides, Raje announced a subsidy of Rs 50 lakh to one ‘Nandi Gaushala' in each district and a mini plant for processing and marketing of camel milk in Jaipur with a cost of Rs 5 crore on pilot basis.

When the chief minister announced one-time crop loan waiver, opposition members created uproar demanding complete loan waiver.

 In view of the Supreme Court’s ban on sand mining, the budget announced that mining leases would be granted through auctions only. The move may come as a relief for infrastructure projects in the state, many of which have been stalled after the Supreme Court restrained 82 leaseholders from mining activities in the state.

Leader of opposition, Rameshwar Dudi, Congress whip, independent MLA Hanuman Beniwal and other Congress members briefly disrupted the house, alleging the waiver was a betrayal with the farmers. With PTI inputs