Hyderabad: The AP government is making all out efforts to convince the Reserve Bank of India (RBI) to accept rescheduling of agricultural loans. The P. Kotaiah committee appointed by the state government to study and make recommendations on waiver of farm loans is likely to meet RBI officials on Tuesday. If the RBI accepts rescheduling of farm loans, the banks will reschedule them for 3 to 5 years. AP finance minister Yanamala Ramakrishnudu said once the banks reschedule loans, farmers will be able to get fresh loans and they won’t be asked to repay loans immediately. The state government will take the responsibility of paying the rescheduled agricultural loans. The bankers association representatives wrote a letter to the RBI objecting to waiver of farm loans announced by Telangana and AP state governments.
On the complaint of bankers association, the RBI wrote a letter to both the state governments opposing the waiver. Later, AP Chief Minister N. Chandrababu Naidu sent a letter to the RBI explaining the context in which the state government announced the waiver of farm loans and requested its help in implementing the scheme. However, the state government did not get any reply from the RBI. The Kotaiah committee is also trying to get an appointment from the RBI to discuss the farm loan waiver. Andhra Pradesh state planning board vice-chairman and member of the Kotaiah committee, Mr C. Kutumba Rao said they will most likely meet RBI officials on Tuesday.
After discussing various options on waiver of farm loans, the state government came to a conclusion that in the present situation, rescheduling farm loans is the best option. The burden on the state government will be known after the deadline for waiver of loans is decided. Finance minister Yanamala Ramakrishnudu said that some people are under the wrong impression on rescheduling loans. He said rescheduling loans and loan waiver mean the same thing. He said once the banks reschedule loans, the farmers will get fresh loans and they don’t need old loans. He said that the state government will give guarantee to the banks and RBI on payment of rescheduled loans. He said the government will pay the total amount to the banks in three or five years according the rescheduled time limit.
Meanwhile, Agriculture minister Prattipati Pulla Rao said that the bankers are not coming forward on waiver of farm loans. He said bankers were not accepting the scheme. Talking to the media on Monday in the Assembly lobbies, he said that they are of the opinion to waive farm loans up to Rs 1-and-a-half lakh.
He said in fact they gave this assurance to the farmers when the state was united, but after bifurcation also, the TD has mentioned about it in its manifesto and they have decided not to go back on their promise.
