Government to deflate waiver

Mumbai: The Maharashtra government seems to be trying to reduce by almost Rs 10,000-12,000 crore, its much-feted Rs 34,000 crore farm loan waiver package announced last month.

The government had announced the loan waiver scheme to placate agitating farmers. However, only farmers who had borrowed loans between June 1, 2012 and June 30, 2016 will benefit from the scheme. The waiver will not include restructured loans taken by up to 10-12 lakh defaulter farmers taken outside the cut-off period, as has been demanded by farmers’ representatives, said finance ministry sources.

The state government has taken a decision of waiving off loans of farmers taken from April 1, 2012 to June 30, 2016. It claims that almost 34 lakh farmers who failed to repay their loans in this period would benefit from the waiver.

But there is a catch. There are around 10 to 12 lakh farmers who got their loans restructured in the last two years. These loans have a deadline of June 30, 2017. As the government has decided to waive off loans only till June 30, 2016, these restructured loans are unlikely to be waived off. These loans amount to almost Rs 10,000 crore. Therefore, the government’0s claims to waive off Rs 34,000 crore worth of loans is likely to come down by around Rs 10,000 crore.

Farmers’ organisations have been demanding to extend the deadline of the loan waiver scheme for loans taken till June 30, 2017. However, the government has cited the National Bank for Agricul-ture and Rural Develop-ment’s (NABARD) objection to waive off current loans and has decided to waive off loans only till June 30, 2016.

“We were objecting the criteria from day one. Government was trying to get as many as farmers out of the scheme. This mess of restructured loan is one of the proofs of it,” said farmers leader and MP, Raju Shetti.

Highlights of the loan waiver scheme

• A total 89 lakh farmers will get benefit.
• 36 lakh farmers whose loan amount is under Rs 1.5 lakh and who failed to repay loans till June 30, 2016 will get a complete waiver. It will cost Rs 18,172 crore.
• 8 lakh farmers whose loans are above Rs  1.5 lakh will get their debt waived off till Rs 1.5 lakh. This amount totals to Rs 4,600 crore.
• Farmers who have repaid their loans will also benefit. They will either receive subsidy or have 25 per cent waived off from their loan. 35 lakh farmers fall in this category and this amount totals around Rs 8,750 crore.

Excluded from the plan:

• Ministers, former ministers, MPs, MLAs and MLCs, members of zilla parishads and municipal corporations.
• Officials working in government and semi-government bodies.
• Those paying income-tax return with income of Rs 4 lakh per year or more. l Presidents and vice-presidents of cooperative sugar factories, cotton mills, district cooperative banks, and milk federations, agricultural produce market committees (APMCs).
• Those holding shops under Mumbai Shops and Establishment Act with income of more than Rs 10 lakh per annum.