Telangana Launches 2nd Phase of Crop Loan Waiver with Rs 6,198 Crore Outlay

Telangana's Chief Minister A Revanth Reddy inaugurated the second phase of the state's crop loan waiver scheme, expected to benefit around 6.40 lakh farming families with an outlay exceeding Rs 6,198 crore. This phase focuses on waiving loans up to Rs 1.50 lakh after previously addressing loans up to Rs 1 lakh.

Telangana Chief Minister A Revanth Reddy on Tuesday launched the second phase of his government's crop loan waiver scheme with an outlay of over Rs 6,198 crore, aimed at benefiting around 6.40 lakh farmer families.

The chief minister and his cabinet ministers initiated the disbursement of funds for the loan waiver during an event held at the legislative assembly premises.

Having waived debts up to Rs one lakh in the first phase on July 18, the current phase addresses loans up to Rs 1.50 lakh.

During his speech, Revanth Reddy highlighted that the Congress had committed to loan waivers in their 'rythu declaration' during a 2022 public meeting in Warangal, in the presence of opposition leader Rahul Gandhi.

He criticized the former BRS government for failing to waive loans worth Rs 25,000 crore over its decade-long term.

''We have demonstrated our commitment by waiving loans up to Rs 1.50 lakh for about 18 lakh farmers. We aim to further relieve debt by waiving loans up to Rs two lakh in August, paralleling the nation's freedom achieved in August,'' Reddy said.

No state has ever undertaken a loan waiver of Rs 31,000 crore, making this a record in the country's history, he added.

He noted that while banks often settle corporate loans with haircuts when they become non-performing assets, his government is ensuring ''full-time settlement'' to uphold farmers' dignity.

His government has already paid Rs 43,000 crore in interest over six months on loans taken by the preceding BRS regime, he claimed.

Reddy also highlighted Congress-led initiatives such as the Green Revolution, major irrigation projects, bank nationalization, the Food Security Act, and previous farm loan waivers as evidence of their longstanding commitment to agriculture.