Trying to mobilise funds for farmers’ loans: K Chandrasekhar Rao

Hyderabad: Chief Minister K. Chandrasekhar Rao on Wednesday said a one-time settlement of crop loan arrears of farmers was not possible in the near future though the government was making serious efforts for the same.

He said the government was trying to mobilise Rs 8,000 crore for OTS by moving courts to recover Rs 4,000 crore in commercial tax arrears, by utilising the Rs 3,000 crore in regularisation fees from the recent LRS and seeking Rs 3,000 crore in loans under FRBM relaxation norms.

Mr Rao was responding to Opposition criticism that the payment of loan arrears to banks in instalments for four years by the government was leading to farmer suicides since the banks were refusing fresh loans till the entire arrears are cleared, forcing the farmers to opt for private moneylenders.

While the TRS government had waived off Rs 17,000 in loan arrears after it came to power in June 2014, it has, so far, paid over '8,300 crore to banks in two instalments in 2014 and 2015. It owes another Rs 8,500 crore to banks, which the Opposition wants cleared at one go.

Mr Rao said, “It’s a fact that no state government has cash reserves of Rs 8,000 crore to make such payments at one go.. Government manages finances on a day-to-day, week-to-week, month-to-month basis. Despite this, we cleared over Rs 8,300 crore. We are making serious efforts to mobilise the remaining '8,500 crore and if they fructify, we will clear the loans at one go.”

Mr Rao said various business establishment owe over Rs 4,000 crore, accrued for over a decade, to the commercial tax department.

“We have expedited legal action against them. If we win the cases, we get Rs 4,000 crore. Under the recent land regularisation scheme, we expect Rs 3,000 crore. The 14th Finance Commission has enhanced our borrowing limit from 3 per cent of GSDP to 3.5 per cent, which would fetch another Rs 3,000 crore,” he said.