The Telangana Government has issued an Order releasing modalities for the farm loan waiver scheme. Under this initiative, short-term agricultural loans up to Rs 2 lakh will be directly credited to eligible farmers’ bank accounts.
The scheme, estimated to require around Rs 31,000-35,000 crore, will cover loans taken between December 12, 2018, and December 9, 2023. To streamline the identification of beneficiaries and disbursement of funds, the government will collaborate with the National Informatics Centre (NIC) to establish a dedicated portal. Public distribution system (PDS) data will be used to identify the beneficiaries.
While all farm loans within the specified date range and up to ₹2 lakhs will be considered, the government has stipulated that only one loan per family will be waived. Families with outstanding loan amounts exceeding ₹2 lakhs must settle the excess amount to qualify for the waiver benefit. Banks will be required to appoint Nodal Officers to facilitate the disbursement process.
The loan waiver scheme became a contentious political issue during the Lok Sabha elections, with the Bharat Rashtra Samithi (BRS) accusing the Congress Party of failing to fulfill its earlier promise.
However, Chief Minister and Pradesh Congress Committee President A Revanth Reddy has assured that the waiver process will be completed before August. The government plans to allocate funds in the upcoming State Budget and raise additional funds through a dedicated corporation to ensure timely disbursals.
Certain categories of loans, such as those taken by self-help groups, joint liability groups, and other similar entities, have been excluded from the scheme. Rescheduled or restructured loans will also not be eligible for the waiver.
The Rythu Swarajya Vedika (RSV), an organisation representing farmers’ associations and NGOs, has expressed concerns about the scheme’s potential benefits for larger farmers. They argue that extending the ₹2 lakh waiver to all farmers, regardless of their loan size, may not be necessary.
In conclusion, the Telangana Government’s farmer loan waiver scheme aims to alleviate the financial burden on farmers and stimulate agricultural growth. However, concerns have been raised about its inclusivity and potential impact on the state’s fiscal health. The scheme’s implementation and long-term effects remain to be seen.