Telangana Chief Minister K Chandrasekhar Rao said loan waiver will be implemented in a phased manner.
On the eve of Independence Day, Telangana Chief Minister K Chandrasekhar Rao has announced full waiver of farmer loans upto Rs one lakh with immediate effect, to fulfill the promise he made on the eve of state elections in 2018.
The Chief Minister said farmers who took loan of less than Rs 1 lakh will be freed from debt burden and has ordered to repay loan amount upto Rs 99,999 to the banks.
Special Chief Secretary to Finance, Ramakrishna Rao issued instructions in this regard on Monday. The Chief Minister said money will be deposited in the banks immediately on behalf of the farmers. On the instructions of Chief Minister KCR, the finance department released Rs 5,809.78 crore on behalf of 9,02,843 farmers on Monday. The released amount will be deposited in the farmers accounts in the banks under loan waiver.
The Chief Minister said loan waiver will be implemented in a phased manner. He directed the officials of the Agriculture and Finance Department of the state to write to the banks and get comprehensive details. It took a year to complete the entire process.
Due to the pandemic, lockdown and the consequences of demonetisation in the country, the Telangana government faced a big difficulty in mobilising the resources.
However, it has already paid Rs 1,943.64 crore to the banks in respect of 7,19,488 farmers who took loan up to Rs 50,000. This amount has been adjusted in loan waiver accounts.
Recently, Rs 5,809.78 crore have been released for the loan waiver of farmers who owe up to Rs 99,999 rupees to the banks.
On August 2nd, KCR held a comprehensive review on the agricultural sector and farmer loan waiver and announced that the farmer loan waiver scheme will be implemented. Clear instructions are given to the officials to complete the loan waiver process within 45 days.
Finance Minister T Harish Rao also issued a Budget Releasing Order (BRO) on August 3 on the instructions of the Chief Minister. The release of loan waiver funds started on August 3rd . In accordance with the instructions given by Chief Minister, fresh orders have been issued to settle the debt amount up to Rs 99,999. With the latest decision, a total of 16,66,899 farmers in the state will benefit.
From the day the Chief Minister reviewed and announced the farmers' loan waiver on August 2, Finance Minister Harish Rao and Special Principal Secretary of the Finance Department Ramakrishna Rao chalked out a 45-day action plan and executed the same. As part of this, daily reviews and meetings with bankers are held to implement the loan waiver scheme .
On August 3rd, Rs 237.85 crore was released in respect of 62,758 farmers who took loans up to Rs 41,000. Also, on August 4, Rs 126.50 crore loans were waived in respect of 31,339 39 farmers whose loans are under Rs 43,000 and the funds were deposited in the bank accounts. The latest loan amounts up to Rs 99,999 are deposited. The number of farmers who owe up to Rs 99,999 is 9,02,843. The government will pay Rs 5809.78 crore to the banks in this regard. As a result, the government has paid Rs. 7753.43 crore to 16,66,899 farmers under loan waiver scheme.
Telangana prides itself on being farmer-friendly. Under Mission Kakatiya, 35,000 abandoned ponds and water bodies were repaired and a multi-purpose project Kaleshwaram was constructed.
The farmer loan waiver scheme is said to have benefitted 35,32,000 farmers benefited. The government spent Rs 16,144 crore.
So far Rs 7753.43 crore farm loans have been waived benefitting 16, 66,899 farmers.
The Government also introduced the Rythu Bima Scheme to provide financial security to the family of the farmer in case of death due to any reason.
The premium amount is paid by the government. 1,08,051 farmers who have died due to various reasons in the state have been supported till date. Rs 5,402.55 crore insurance amount is paid to the bereaved families.
Telangana also claims to be the only state in the country providing 24 hours free quality electricity to farmers. Free power is provided to 27,49,000 agricultural connections in the state. In the past nine and a half years, that has cost the government Rs 96,288 crores.
The government says it has spent Rs 32,700 crores for the creation of basic facilities in the power sector.
The direct cash transfer scheme, meant to Finance agricultural inputs is Rythu Bandhu. The government says 65 lakh farmers have benefitted and Rs 71,552 crores has been deposited in the farmers' accounts in 11 installments so far at the rate of Rs 10,000 per acre.