Andhra Pradesh Chief Minister Chandra Babu Naidu and his Telangana counterpart K. Chandrasekhar Rao are firm on farm loan waiver despite the strong opposition from Reserve Bank of India. RBI executive director Deepali Pant Joshi had sent communique to both chief secretaries of AP, Telangana in which he stated, “such loans would demoralise borrowers who are promptly repaying while it encourages defaulters hurting the financial health of banks and thus weaken fiscal discipline.”
Notwithstanding this, Chandra Babu Naidu and KCR are firm on farm loan waiver. Babu held meeting with officials and decided to write to RBI to explain the situation of farmers, Dwacra women in AP that led to his promise of loan waiver. Babu is also going to press the need of financial help for Andhra Pradesh in his letter to RBI. Agricultural Minister Pathipati Pulla Rao told media, “Our government has taken the decision to waive all loans with all the responsibility. We’re optimistic that a decision in favour of it would be made by June 30 after considering all issues.”
Chandra Babu Naidu is going to convene a meeting with Bank Officials today (Wednesday), following which he is going to write a letter to RBI. Babu is planning to go to Delhi on June 25, where he is going to meet PM Narendra Modi and RBI Governor Raghuram Rajan and going to convince both. Babu is chalking out a plan to impress both PM, RBI Governor, say top sources in the know. Looks like, Babu is leaving no stone unturned to keep his poll promise. On flip side, KCR too firm on waiving crop loans taken during April 2013 to March 2014.