Pay now, we will reimburse cash later: Andhra Pradesh Finance Minister

Hyderabad: The Andhra Pradesh government is likely to implement ‘Loan Reimbursement Scheme’ for farmers. The government has taken a decision to waive Rs 1.5 lakh farm loan from each family.

AP needs Rs 37,900 crore to implement this scheme and is waiting for RBI’s official announcement on the rescheduling of crop loans. Unless all this takes place, farmers will not get fresh loans. Finance minister Yanamala Ramakrishnudu said that if the farmers pay their crop loan dues to the banks, the government will reimburse the amount to them later.

“The government will credit the amount in the farmer’s bank account directly. The re-payment will be in two or three instalments depending on the state’s financial position. If the government repays the entire amount to the farmers in three years, then every year it has to pay around Rs 1,300 crore. The government is banking on sale of red sanders to pay the farmers.”