- Punjab cabinet clears notification for farmers’ loan waiver
- State Government to write to election commission for permission
- Cabinet also decided to pay the interest to the farmers from April 2017
Chandigarh,September 20, 2017 :
The Punjab Cabinet on Wednesday gave its approval to notify the crop loan waiver scheme announced by Chief Minister Captain Amarinder Singh in the state assembly in June this year.
Besides taking over the entire eligible loan amount of the farmers covered by the debt waiver scheme, the government has decided to also take over the outstanding interest of farmers from 1st April, 2017 till the date of notification, which will lead to an additional Rs 400 crore benefit to the farmers.
The entire amount would be defrayed to the banks in a phased manner, except for the cooperative credit institutions, an official spokesperson disclosed after the cabinet meeting, adding that the proposed notification will pave the way for the state government to take up the issue of settlement of loan with respective banks as a one-time settlement.
The crop loan waiver scheme, based on the recommendations of an expert group headed by eminent economist Dr. T. Haque, will directly benefit nearly 10.25 lac farmers across the state. The Chief Minister had in June announced waiver of the entire crop loans (upto Rs 2 lacs) of all small and marginal farmers (upto 5 acres) and a relief of Rs.2 lac to the remaining marginal farmers irrespective of the amount of loan.
The notification envisages that in case of marginal farmer (less than 2.5 acres) the entire eligible amount of those farmers who have total outstanding crop loan liability upto Rs. 2 lakh shall be provided as debt relief and in case of eligible amount of more than Rs.2 lakh, only Rs.2 lakh shall be provided as debt relief. In case of small famers (from 2.5 acres to less than 5 acres), the entire eligible amount of those farmers who have total outstanding crop loan liability upto Rs.2 lakh, shall be provided as debt relief.
The debt waiver scheme would cover crop loan disbursed to farmers in the state by scheduled commercial banks, cooperative credit institutions (including urban cooperative banks and regional rural banks, collectively called as the 'lending institutions'.
Click at link to watch : Manpreet Badal explains the decision of loan waiver