Telangana News | Government to release Rs 31,000 crore for crop loan waiver

Hyderabad: The Telangana government will release Rs 31,000 crore by the end of next month to waive crop loans of up to Rs 2 lakh, Deputy Chief Minister Mallu Bhatti Vikarmarka said on Thursday.

Addressing a meeting of bankers on the crop loan waiver scheme, he asked them to ensure that the funds released by the government are used only for crop loan waivers. He told the bankers not to trouble farmers by depositing the amount against other loans.

The Deputy Chief Minister revealed that by 4 p.m. on Thursday (July 18), Rs.6,000 crore will be released towards the waiver of crop loans of 11 lakh farmers to the tune of Rs.1 lakh each.

For another round of waiver of crop loans of up to Rs 1 lakh, money will be released during the current month.

The funds for waiver of crop loans of up to Rs 2 lakh will be released next month.

In respect of farmers who have outstanding loans of above Rs 2 lakh, the Deputy Chief Minister asked bankers to speak to respective farmers for recovery of the excess amount. He also wanted bankers to provide loans to farmers for their future needs.

He claimed that this was a historic decision for crop loan waiver in the country. “No other state spent Rs 31,000 crore for waiver of crop loans of up to Rs 2 lakh in one go,” he said.

He recalled that Pradesh Congress Committee president Revanth Reddy and he as the then leader of Congress Legislature Party (CLP) had signed the farm loan waiver guarantee card before launching the election campaign.

Stating that the government remains committed to the promise made, he said the government would implement a farm loan waiver under any circumstances.

He said the government was releasing Rs 31,000 crore through 41 lakh bank accounts of farmers. He claimed that this is a record in the banking history of the country.

Vikarmarka said such a huge recovery was never made in the corporate banking sector. He termed the government’s decision a big boost for the banking system. He said like farmers, the bankers should also celebrate the occasion.

He said the government would take many initiatives for the development of agriculture.

Asserting that 45 per cent of the state’s population is dependent on agriculture, the Deputy CM said the sector is contributing 16.5 per cent to the Gross State Domestic Product (GSDP).