Maharashtra CM Devendra Fadnavis finalises Rs34,000 crore farm loan waiver
Mumbai: The government of Maharashtra approved on Saturday a loan resigns Rs34 billion rupee farm that would benefit 8.9 million farmers in the state.
Minister Devendra Fadnavis told reporters that the waiver would translate into about 90% of farmers indebted to the “debt-free” state.
The government also decided to increase the per-farmer loan waiver lakh Rs1.5 ceiling, regardless of land ownership. Earlier this week, a group of high-ranking ministers led by the Minister of Investment Chandrakant Patil had offered to raise the Rs1 lakh waiver.
Reiterating that it was a “historic Yet Ready” in the history of India and any state, however Fadnavis categorically stated that the government could not suffer more financial burden.
“Rs.34 billion is a huge burden and may have to reduce government work. Fiscal discipline must be strengthened to offset the impact on the state’s finances,” he said.
The agrarian organizations and political parties insisted on a global renunciation of loans without pilots, according to Fadnavis would cost a huge portion of 1.14 trillion dollars and did not go to the government.
Fadnavis said Maharashtra had one of the Rs54,000 lower debt per household farm in the country which was half of the debt per household in several states, including smaller states like Kerala and Punjab.
Fadnavis said that the government had tried to build a broad political consensus on the terms of the loan and the exemption affected all political parties and agricultural organizations.
“We want all parties and all political organizations we appreciate Maharashtra can not get rid of a financial burden and that everyone is welcome to this loan waiver,” he said.
Ally Bharatiya Janata Party (BJP) Shiv Sena, who was aggressive on the issue of agricultural debt, said he was satisfied with the loan exemption. “This is indeed a historic waiver of the loans that the Chief Minister announced.
Uddhav saheb loved 2 rupee lakh lakh but accepted Rs1.5 when Fadnavis discussed it. We are delighted that Shiv Sena’s claim has been accepted, “said transport leader Shiv Sena, Diwakar Raote, who accompanied Fadnavis with other ministers Sena and the BJP at the press conference.
Agricultural organizations like Shetkari Sanghatana and Akhil Bharatiya Kisan Sabha, however, call the loan waiver a major disappointment.
“It is a great loss and we will resume our agitation and continue until an additional exemption for the loan without pilots is announced,” said Maharashtra President Shetkari Sanghatana, Raghunath Patil.
Fadnavis said the government, like the governments of Andhra Pradesh and Telangana, would focus on banks to ensure the repayment of these offset loans.
“The government can not make this payment in a year and it will be extended over a period of several years. We talk to the banks and there will be an additional charge of interest payments in installments, but without any other option,” Fadnavis said.
The loan waiver has three components. One, agricultural loans from all indebted farmers whose accounts were in default on June 30, 2016 can be removed with a ceiling Rs1.5 lakh per farmer. This would directly benefit 3.6 million farmers.
Two farmers who regularly repay their loans will receive a 25% premium on their debt with a 25,000 square meter roof. Three, some 6 lakh farmers whose loans were restructured loan will also benefit from the exemption as a one-time settlement system under which the government would contribute lakh Rs1.5 per account.
“In total, the Rs34,000 million ruin will help 8.9 million farmers. Of these, 7/12 extracts from 4 million farmers to be totally debt free, while others benefit from Rs1.5 lakh Abandoned their total debt, a single set of rules and bonus Rs25,000.Never in the history of a state no waiver of agricultural loans have benefited many farmers, “said Mr. Fadnavis.