Telangana cabinet's decision to waive the loans is estimated to cost the government to the tune of ₹31,000 crore.
Published Jun 22, 2024 | 7:00 AM ⚊ Updated Jun 22, 2024 | 7:00 AM
Telangana cabinet meeting
The Telangana state cabinet, which met under the chairpersonship of Chief Minister A Revanth Reddy on Friday, 21 June approved the waiver of ₹2 lakh crop loans at one go – availed by farmers between 12 December, 2018 and 9 December 2023.
The cabinet discussed the proposal thread bare before deciding to waive the loans for which it is estimated that the government would require ₹31,000 crore.
Briefing media persons of the decisions taken at the cabinet meeting on Friday, 21 June, Chief Minister A Revanth Reddy said that the cabinet took the decision to honour the promise made by party senior leader Rahul Gandhi at Warangal during his farmers’ declaration on 6 May, 2022.
He had declared then that ₹2 lakh crop loans availed by the farmers would be waived. “We are committed to redeeming our promise to the farmers. Very soon we will issue a GO which will have all the details on eligibility for the waiver,” he said.
Revanth Reddy had said in the past that come what may, he would implement farm loan waiver scheme up to ₹2 lakh before Independence day this year.
Revanth Reddy said that the cabinet went through the proposals thoroughly and discussed ways to raise money for waiving the crop loans. The waiver would benefit 47 lakh farmers, he said adding that guidelines were being worked out for determining the eligibility for the loan waiver.
In another major decision, the cabinet cleared a proposal for implementation of Rythu Bharosa for farmers. The CM said that a cabinet sub-committee headed by Dy CM and Finance Minister Mallu Bhatti Vikramarka will hold consultations with all stakeholders before suggesting the guidelines. The other members of the cabinet sub-committee are Congress Manifesto Committee Chairman D Sridhar Babu who is also Minister for IT and Revenue Minister Ponguleti Srinivasa Reddy.
Revanth Reddy said that the committee would go through the existing Rythu Bandhu scheme of the previous BRS government with a fine-tooth comb for framing guidelines for Rythu Bharosa. The sub-committee will identify those who did not deserve the support from the government. There were reports that those who were wallowing in riches too were getting the rythu bandhu support.
It is also said that even KCR was a beneficiary of the support for his agriculture land in his farm house in Errvalli in Siddipet district. The CM said the sub-committee will examine all aspects of how the scheme was implemented till now, he said, implying that the scheme would be restricted only to the farmers who were in dire need of the support from the government.
Revanth Reddy said that the sub-committee is required to submit its report to the government before 15 July after which, it would be placed in the Assembly for a thorough discussion and finalisation of the guidelines.
Referring to how loan waiver scheme was implemented under the erstwhile BRS government, the Revanth Reddy said it was done twice during the last 10 years, in phases over a very long period, which wasn’t of much help to farmers at all.
Instead of helping the farmers, it led to distress in the farm sector leading to several farmers dying by suicide, he said. He recalled former Chief Minister K Chandrasekhar Rao waiving crop loans pending up to 2014 immediately after coming to power and the second time it was done was in 2018 for loans up to ₹1 lakh. Under the two spells, the then BRS government had spent ₹16,000 crore first time and ₹12,000 crore second time, totaling ₹28,000 crore, he said.
The CM said that if either Sonia Gandhi or Rahul Gandhi make a promise, it would be implemented come what may. Sonia Gandhi had promised Telangana at a public meeting in Karimnagar in 2004 and delivered it against heavy odds. Her promise is like the stone-edict, he said and also recalled Rahul Gandhi’s promise of crop loan waiver which the party was now fulfilling to give fillip to the farm sector.
(Edited by Neena)
(South First is now on WhatsApp and Telegram)
