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Day 1 in office: Ashok Gehlot waives farm loans of up to Rs 2 lakh

Gehlot alleged that the previous BJP government cheated farmers when it had announced loan waiver of up to Rs 50,000.

, ET Bureau|
Updated: Dec 20, 2018, 06.47 AM IST
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Rajasthan CM announces farm loans waiver of up to Rs 2 lakh
Rajasthan CM announces farm loans waiver of up to Rs 2 lakh
JAIPUR: The new Congress government in Rajasthan on Wednesday announced a farm loan waiver for farmers who have taken loans from nationalised banks and cooperative banks, a day after new Congress governments in Madhya Pradesh and Chhattisgarh did the same.

Rajasthan chief minister Ashok Gehlot, who took oath on Monday, said the government would completely write off loans taken from cooperative banks, while for nationalised and other banks the waiver would be for loans up to Rs 2 lakh as on November 30, 2018.

He said the move will cost the exchequer Rs 18,000 crore, and will benefit farmers who are in trouble and have defaulted in loan payment. “For the first time, farmers have committed suicides in Rajasthan. The situation is grave,” Gehlot said. “The waiver would be for the short term crop loans.”

Congress president Rahul Gandhi, during the election campaign, had promised to waive farm loans within 10 days of government formation.

Gehlot alleged that the previous BJP government cheated farmers when it had announced loan waiver of up to Rs 50,000. “They released only Rs 2,000 crore, leaving Rs 6,000 crore unutilised out of the budgeted Rs 8,000 crore,” he alleged. “We will waive off the loan completely.” The scheme is likely to benefit 23.5 lakh farmers in the state who have taken farm loan from cooperative banks.

“Cooperative banks lend farm loan of maximum up to Rs 1.5 lakh,” a cooperative department official said.

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