N Chandrababu Naidu to launch debt redemption scheme at Chittoor district on Thursday

Hyderabad: Andhra Pradesh Chief Minister N Chandrababu Naidu will formally launch the ambitious 'Farmers Debt Redemption Scheme' in his native Chittoor district on Thursday.

Under the scheme, 22.79 lakh farmers who have availed of crop loans of up to Rs 50,000 each will get immediate relief from the debt burden while others whose loan amounts are up to Rs 1.5 lakh will get it repaid by the government in five instalments with an initial 20 per cent payment now.

For loans of Rs 50,001 to Rs 1.5 lakh, the scale of finance norm will be applied and the relief under the scheme will be in proportion to it, said Communications Advisor to the government Parakala Prabhakar.

For loan amounts below Rs 50,000, the scale of finance norm would not apply and the government in one go would repay the full amount.

The state government recently instituted the Farmers' Empowerment Corporation through which the debt scheme would be implemented.

A sum of Rs 5,000 crore has been made available to the FEC to be transferred to the loan accounts of farmers, he said.

Prabhakar alleged that some parties have spread false information about the debt redemption scheme only to create panic among farmers.

"The farmers can rest assured that the government, as promised, will provide debt relief of up to Rs 1.5 lakh whatever be the cost," he said, adding that some families who have availed of loans running into lakhs of rupees could not be covered under the scheme.

"To cite an example, a family took Rs 56 lakh as agricultural loan. One family got Rs 43 lakh and another Rs 75 lakh. Should these loans be repaid by the government," Prabhakar questioned.