Assam Government has approved Rs 600 crore farm loan waiver
The Bharatiya Janta Party (BJP) government is currently reigning in Assam. It has approved Rs. 600 crore farm loan waiver. It said that this will benefit around 8 lakh farmers of the state. This is a move that has emerged as a highlight in the backdrop of the debt woes of farmers becoming a major issue in the run up to the Lok Sabha elections.
This decision was taken at a cabinet meeting that was held on Monday. Assam is the third state to receive farm loan waivers in the last few days. But all of this happened after the newly formed Congress government in Madhya Pradesh and Chhattisgarh announced it on Monday. The states which have earlier waived farm loans are Karnataka, Maharashtra, Uttar Pradesh and Punjab.
According to the scheme prepared the Assam government, it will write off 25 per cent loan of farmers up to a maximum of Rs. 25,000 of all farm debts. This was announced state government spokesperson and parliamentary affairs minister, Chandra Mohan Potawary. This waiver will be applicable for all loans taken through Kisan Credit Card (KCC) and from PSU banks.
The government has also sanctioned an interest relief scheme. This scheme will enable around 19 lakh farmers to take loans at zero interest from the next financial year.
He said, “The debt relief scheme for farmers will waive 25 per cent of all loans taken till now. The benefit will be up to a maximum of Rs 25000. This scheme will immediately benefit around 8 lakh farmers.”
Due to these schemes, there will also be an additional burden of Rs 600 crore on the state exchequer this fiscal. Potawary said, “For the next fiscal, we will have to do budgetary provision for the schemes.”
The farmer loan waiver was clearly a move the BJP to counter the Congress storm.
