Hyderabad: Telangana state officials will visit Mumbai and meet the RBI officials on Monday seeking an early decision on rescheduling of crop loans in the state. Though it is two months since the kharif season began, no decision has been taken on crop loan waiver or rescheduling so far as RBI has several queries on the issue. The banks have stopped giving fresh loans leading to severe resentment among farmers.
Instead of writing letters to RBI on the issue and delay the matter further, the TS government has decided to send finance department officials to Mumbai.
They will meet the RBI officials directly and give clarifications on whatever doubts raised by RBI on the extent of damage caused to crops in 377 mandals on account of Phailin cyclone last year and seek rescheduling of loans at the earliest.
A team of officials headed by principal secretary of finance department V. Nagi Reddy is scheduled to meet RBI governor Raghuram Rajan and other senior officials on Monday. It may be recalled that the TS government had passed a resolution in the Cabinet meeting last month waiving of all types of crop loans up to one lakh. The government had estimated that the crop loan arrears amounts to nearly Rs 19,000 crore.
However, the RBI has written to government that it will agree only for rescheduling of loans taken during last year (2013-14). They also informed that they will consider rescheduling of loans only in 377 mandals that were declared cyclone and drought-affected in 2013. Hence, the 77 mandals that were recently declared Phailin-affected last month will not meet the criterion and will not be considered eligible.
If that happens, the rescheduling of loans will be confined to just Rs 4,000 crore and the remaining Rs 15,000 crore has to be borne by Telangana state government.
The TS government has been seeking a five year time frame for repayment but RBI is willing to offer only one year. Given this situation, TS officials’ team will take up all these issues with the RBI officials on Monday.
