Reserve Bank of India chief Raghuram Rajan happy with Andhra Pradesh: Yanamala Ramakrishnudu
16 Oct 2014 9:20 AM IST
Raghuram Rajan appreciated the initiatives taken by AP government
RBI Governor Raghuram Rajan
Hyderabad: Reserve Bank of India governor Raghuram Rajan on Wednesday not only “appreciated” but was also “impressed” with the initiatives taken by the Andhra Pradesh government such as the setting up of Farmers Empowerment Corporation to implement the crop loan redemption scheme for farmers over the next five years, said AP finance minister Yanamala Ramakrishnudu.
Speaking to reporters after his 75-minute meeting with the RBI governor, the AP finance minister said, “We have explained the financial and social problems being faced by the state post-bifurcation. He appreciated our initiatives and assured that the RBI would co-operate with the state government. The RBI governor said he was impressed with AP government’s programmes,” Mr Ramakrishnudu said.
Telugu Desam MP Y. Sujana Chowdary, State Planning Board vice-chairman Kutumba Rao, chief secretary I.Y.R Krishna Rao and top officials of the fin-ance and planning departments also participated in the meeting with the RBI governor and his team.
About the contentious crop loan waiver scheme on which the AP government had differences with the apex bank, the finance minister said the RBI governor was “not negative” when the “Farmers Empowerment Corporation” initiative and issue of certificates to farmers was explained.
“In fact, Mr Rajan said the FEC was the best solution as farmers would hold the certificates (bonds) and get the interest and not the banks,” Mr Chowdary, who is heading the Financial Management Committee, said.
Mr Rajan also appreciated the AP government’s efforts to weed out bogus and multiple account holders from the crop loan waiver scheme.
As part of the crop loan redemption scheme, the state government will pay upfront Rs 5,000 crore to the banks through the FEC and repay the balance farmers’ loans in the next four years at a rate of 20 per cent per annum.
Responding to the state government’s request, Mr Rajan said that the RBI was ready to open its regional headquarters at Vijayawada, the state’s new capital region, if the government allotted the required land. He also agreed to hold a meeting of the RBI’s central board at Vijayawada on the request of the Finance minister.
( Source : dc correspondent )
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