Andhra Pradesh ‘Loan panel’ hopeful of RBI’s support

Hyderabad: The Kotaiah Committee appointed by the TD government on the waiver of farm loans has expressed confidence that the Reserve Banks of India will agree to reschedule farm loans as requested by the Andhra Pradesh government.

The Committee held its meeting on Monday at Secretariat attended by government advisor C.S. Rao, finance department officials Ajeya Kallam, Premchandra Reddy and others. They reviewed the latest position on the waiver of farm loans.

One of the Committee members said “We are hopeful in getting Reserve Banks’ positive decision on rescheduling of farm loans”. If RBI agrees, the loans will be rescheduled which will help both the farmers and the state government.

The farmers will get fresh loans to start agriculture activities and the government will get some relief on the payment of loans to banks. Sources said after RBI announces officially to reschedule the loans, the state government will decide the amount of loan waiver.

The Kotaiah Committee is also considering alternatives in case RBI rejects the state government’s request on rescheduling farm loans.