Andhra Pradesh Chief Minister Chandra Babu Naidu’s pets scheme- loan waiver scheme- is going to cost a bomb for the new state. As per the reports, waiver of crop loans, agricultural loans, gold loans, is expected to cost Rs 30,000 Crore. Kotiaha Committee, which was constituted to look into possibilities and challenges of loan waiver, has met Chandra Babu Naidu at his residence. Finance Minister Yanamala Ramakrishnudu and Agricultura Minister Pathipati Pullarao were also present at meeting.
As per the committee’s recommendations, if a farmer has more than one loan, efforts are being made to waive only one loan so that other farmers also be benefitted. However, discussions are going on over the limit of loan whether it is Rs 1 Lakh or Rs 1.5 Lakh. Sources in the know confide that the limit would be Rs 1.5 Lakh. If a farmer has debts more than Rs 1.5 Lakh, government will only pay upto Rs 1.5 Lakh and the remaining has to be paid by the farmer himself. Both agricultural loans and Dwacra loans are going to be a burden of over Rs 30,000 crore.
since AP government is not in a position to pay total amount at once, government is mulling over to pay some amount in first phase and want to issue bonds for the remaining. Since RBI is opposing the option of issuing bonds, government is chalking out a new option. Authoirties may ask farmers to repay the remaining amount and issue bonds to farmers and government will slowly reimburse the amount to farmers.
For instance, if government is willing to waive of Rs 1.5 Lakh loan, it will pay Rs 75,000 initially and may ask respective ones to pay Rs 75,000 on their own and the government will repay it to farmer in instalments. Kotaiaha Commitee is going to meet RBI Governor Raghuram Rajan in New Delhi on Tuesday followed by meeting Union Finance Secretary over the issue. Chandra Babu Naidu has already chalked out a plan to generate revenue in order to waive of loans. Efforts are being made to sell Red Sandal in government handover and if that is not sufficient, he make look at the option of making new debts.