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LATEST NEWS UPDATES | Rs 34,000cr loan waiver

Rs 34,000cr loan waiver

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published Published on Jun 25, 2017   modified Modified on Jun 25, 2017
-PTI/ The Telegraph

Mumbai:
The BJP-led Maharashtra government today unveiled a Rs 34,020-crore farm loan waiver scheme, under which debt of up to Rs 1.5 lakh each will be written off, making 40 lakh farmers debt-free and providing relief to 49 lakh others.

Chief minister Devendra Fadnavis said this was the "biggest" loan waiver scheme in the country. He said all BJP ministers and legislators would contribute a month's salary towards the loan waiver.

"This Rs 34,020-crore loan waiver scheme - 'Chhatrapati Shivaji Maharaj Krushi Sanman Yojana' - will benefit 89 lakh farmers in the state, out of which 40 lakh cultivators will become debt-free," he told reporters here.

Fadnavis, who had been under pressure to bring in an agrarian relief programme to help farmers hit by falling prices of produce and recurring drought, said the state cabinet approved the decision today.

"There has been a demand for loan waiver for farmers who have been severely affected due to continuous drought since 2012. They were not able to get new loans for their crops until previous debt was paid. We have time and again assured them that we will help the distressed farmers," he said.

"In the past two to three days, we have held discussions with various stake-holders, leaders of political parties, farmers groups, and finally decided to grant the biggest loan waiver given by any state in the country," the chief minister said.

The Uttar Pradesh government had announced a Rs 1-lakh loan waiver for all marginal and small farmers (those owning up to 5 acres of farmland). The scheme is expected to cover 2.15 crore of the state's 2.30 crore farmers in the state and cost Rs 30,729 crore.

Fadnavis said although the agriculture loans per household in Maharashtra were almost half of that in other states, the state government decided to announce the biggest loan waiver scheme.

"The land extracts of farmers having loan up to Rs 1.5 lakh will be cleared, thereby making around 40 lakh cultivators debt-free. Farmers, whose crop loan has been restructured from 2012 to 2016 and who are defaulters as on June 30, 2016, will get incentives up to 25 per cent of the crop loan or Rs 25,000, whichever is less," he said.

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The Telegraph, 24 June, 2017, https://www.telegraphindia.com/1170625/jsp/nation/story_158653.jsp


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