Hyderabad: The Andhra Pradesh finance department made it clear to the government that it will not be possible to provide funds for waiver of farm loans within the budget. The department has said that the government has to mobilise the funds outside the budget.
Sources said the rescheduling of farm loans will cover 512 mandals out of around 670 mandals. Among 572 mandals, 464 mandals were affected by Pylon cyclone and heavy rains and 123 mandals were affected by drought.
In 2013-14 kharif season total crop loans were Rs 20,530 crore and in rabi Rs 16,528 crore. The outstanding gold loans were Rs 35,000 crore and crop loans were Rs 25,000 crore. If the state government decides to waive the Rs 1.5 lakh loan for each family it will require around Rs 35,000 crore.
Meanwhile, the state government is working out various options to mobilise funds. One of the options is to develop private land.
Revenue officials said the government will come to an agreement with farmers and private persons in the important areas of the state to acquire land from them. If the government acquires 1000 acres of land and readies it with all adequate infrastructure, it will hand-over 40% of the land to the owners and remaining 60% land will be with the government.
The private persons or the government will sell the land to interested industrialists who want to set up their companies or industries. The government believes that this is a good way of getting huge funds.
