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Karna govt announces farm loan waiver will be made in one go

PTI bengalu
Updated: 12-06-2019 22:31 IST
Karna govt announces farm loan waiver will be made in one go

Image Credit: Wikimedia Commons

Karnataka government has ordered release of money toward farm loan waiver in commercial banks in one-go as against four instalments announced in the budget last year. The money will be deposited in the accounts of eligible farmers in one instalment, the government said in its June 11 order.

The loan waiver comprises of restructured loans of Rs 2,812 crore, overdue loans of Rs 3,057 crore and incentive for regular loans Rs 720 crore, which farmers had taken from the nationalised banks, it said. The government, however, has not taken a call on the non-performing asset (NPA) loans, which are eligible for waiver. There are 1.08 lakh farmers having a loan of Rs 965 crore under the NPA loan category.

The government has cleared the loans of 7.5 lakh farmers by paying Rs 3,930 crore to the commercial banks. It has paid Rs 4,830 crore to the cooperative banks benefiting 11.2 lakh farmers. Chief Minister H D Kumaraswamy had in July last year announced waiver of farm loans to the tune of Rs 46,000 crore that will benefit approximately 42 lakh farmers and will be executed in phases over a period of four years.

This scheme was part of the JD(S) manifesto, which chief minister H D Kumaraswamy implemented after taking its ally Congress in the government onboard. Officials Wednesday said the chief minister has convened a meeting with the state level bankers on June 14 regarding the crop loan waiver.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)