20 per cent crop loans waiver in first phase: Andhra Pradesh cabinet

Rs 112 crores for Aandhra Pradesh students in living in Telangana
Hyderabad: After a four-hour-long marathon meeting on Wednesday, the Andhra Pradesh Cabinet decided to waive 20 per cent crop loans in the first phase, extend fee reimbursement to AP students in Telangana by spending Rs 112 crore and set up an empowerment corporation for women self-help groups along the lines of the one proposed for farmers.
Chief Minister N. Chandrababu Naidu said his government would repay the farmers’ loans in five installments to banks over a four-year period starting this month.
“Runa Maphi kaadu, runa vimukti (It is not crop loan waiver but freedom from loans for the farmers),” said he. In the first phase, 20 per cent of the money would be given to the Farmers Empowerment Corporation, which in turn would pay to the banks.
“We have requested the banks to reschedule the loans of farmers after the government pays 20 per cent of the loan amount,” he said.
Mr Naidu said the farmers’ corporation will be a Diwali gift to farmers and it would be inaugurated on October 22 as a not-for-profit agency.
The state government will facilitate the corporation to mobilise funds required to meet the loan repayment obligation through various means including levying of special cess and loans from banks and financial institutions. The corporation will also receive proceeds from the sale of Red Sanders due later this month.
The Chief Minister appealed to the banks to renew loans of the borrowers upon receiving 20 per cent of the loan amount.
( Source : dc correspondent )
Next Story