Waiving of Farmer Loans will become financial burdensome for both state governments. For Andhra Pradesh, it costs around 40K crores for waving of types of loans where for Telangana Government it costs to 17K crores in this regard. RBI has put norms and conditions for giving rescheduling on giving loans in this Kharif Season.
It asked the governments to mention how to repay the waiving of loans with interest in their budget. It’s certain for two governments to look for new alternatives. Union Government is not at all interested to involve in this issue. AP Government has got approval of selling of seized Red Sandalwood in Seshachalam Forests. Reportedly, there are around 11K tones of Sandalwood seized by the police department. AP Government was also received approval from central government to put auction for the seized Sandalwood.
Coming to Telangana, Government also has a plan to sell some valuable lands in and around Hyderabad. There is a buzz that TG government will mention in 10 months state budget. TG has planned to sell the lands that were easy to encroach on. As per buzz, that TG government might waive 1 lac rupees of loan for every farmer.