Chief Minister-in-waiting Chandrababu Naidu is very serious about fulfilling his ‘farmer loan waiver’ poll promise which costs the public exchequer to the tune of Rs 54,000 crore by June 8th, 2014.
Sources say, Naidu’s first signature after taking over as chief minister of residuary Andhra Pradesh will be on the ‘farmer loan waiver’ which is biggest ever populist scheme introduced by any state government in the country. By signing the file in the presence of 5 lakh people, Chief Ministers of neighboring states and several dignitaries at his swearing-in ceremony, Our Hi-Tech Babu wishes to get National attention for the farm loan waiver.
Out of Rs 54,000 crore, Farm and Self-Group Loans amount to Rs 36,000 crore and Rs 18,000 crore respectively. In case of including mortgaged Gold Ornaments, The amount would cross Rs 60,000 crore. However, The State Level Bankers committee informed TDP Chief that waiver of Gold Loan isn’t possible.
It came to the notice of Chandrababu Naidu that Banks have been including other loans in farm loan category to clean their balance sheets. C Kutumba Rao who is a financial expert and advisor to Naidu questions how could the loan waiver sum in 2014 go up by 5-6 times than what it was in 2008 (Rs 9,000). So, The final amount could be less than Rs 54,000 crore if taken appropriate measures.
During the recent meeting with Bankers, Chandrababu asked them if there is any possibility of clearing the farm loan in a span of 5 years by paying interest. He, however, dropped his plans after being informed that this move would cost the state exchequer Rs 18,000 crore more. Finally, Naidu made up his mind to issue security bonds with state government guarantee to banks against the loan amount.