Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,929.7557.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

Kamal Nath admits to delay, difficulties in farm loan waiver

There are some difficulties emerging in the loan waiver process that had led to the delay. We will fulfill our promise of loan waiver of up to Rs 2 lakh for all farmers,” Nath said

, ET Bureau|
Updated: Aug 24, 2019, 09.15 AM IST
0Comments
Agencies
kamal-nath-et
He said scrutiny of 48 lakh applications received from 37 lakh farmers for loan waiver showed some farmers took loans from multiple banks on the same piece of land.
New Delhi: Admitting to “delay and difficulties” in delivering the poll promise of farm loan waiver in Madhya Pradesh, chief minister Kamal Nath has appealed to farmers in the state to be patient and not desist from renewing their loan accounts with banks for the current year as that would not affect their case of a loan waiver.

The Congress in Madhya Pradesh has been under fire from the BJP for not fully delivering on its loan waiver promise, an issue that apparently cost the Congress in the Lok Sabha polls in the state where it won only one out of the 29 seats.

CM Kamal Nath in an open letter to farmers on Friday said Rs 7000 crore worth loans of over 20 lakh farmers in the state had been waived off so far in Phase One. He, however, blamed the BJP for leaving behind empty coffers.

“I can understand the worry of the farmers who have been waiting for their loans to be waived off. I appeal to you to keep patience. There are some difficulties emerging in the loan waiver process that had led to the delay. We will fulfill our promise of loan waiver of up to Rs 2 lakh for all farmers,” Nath said in his open letter.

So far, the state government has waived off bad loans (NPAs) of up to Rs 2 lakh and up to Rs 50,000 for active loans. Nath said this was done in Phase 1 for the “neediest” farmers despite the new government inheriting empty coffers from the previous BJP government and lots of dues payable to farmers under other schemes.

He said scrutiny of 48 lakh applications received from 37 lakh farmers for loan waiver showed some farmers took loans from multiple banks on the same piece of land and that needs to be scrutinized with all the banks as the government would waive only one such loan per farmer. This is still to be completed for nationalised banks but Nath said this scrutiny is complete in terms of co-operative banks and regional rural banks in the state.

“Hence loans taken from the co-operative banks and regional rural banks will be waived off in the second phase,” Nath said. He said the priority will be given to waiving loans taken from co-operative banks, then regional rural banks and then nationalised banks. “A proper arrangement has been made for waiving off loans so that there is no confusion or doubt,” Nath said.

Also Read

No loan waiver promise, BJP says its manifesto more realistic

Congress drive to convince farmers on loan waiver

Haryana polls: INLD promises loan waiver for farmers, small traders; MSP with 50 per cent profit

Congress releases poll manifesto; promises 33% quota for women in government jobs, loan waiver for farmers

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service