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Gujarat, Assam governments waive rural electricity bills, farm loans
The BJP governments in Gujarat and Assam on Tuesday decided to waive rural electricity bills and farm loans respectively, to the tune of Rs 650 crore and Rs 600 crore. The announcements came a day after the Congress governments in MP and Chhattishgarh waived farm loans.
The Bharatiya Janata Party (BJP) governments in Gujarat and Assam on Tuesday decided to waive rural electricity bills and farm loans respectively, to the tune of Rs 650 crore and Rs 600 crore. The announcements came a day after the newly-formed Congress governments in Madhya Pradesh and Chhattishgarh waived farm loans. The new Congress government in Rajasthan is also expected to do the same shortly.
The bout of competitive populism is an indicator that the BJP is feeling the pressure, say political analysts.
Gujarat’s energy minister Saurabh Patel said the electricity bill waiver would benefit 6.22 lakh people in rural areas across the state. The minister added that these connections were cut off due to power theft and non-payment of bills. “These are domestic, agricultural, as well as commercial connections,” Patel said.
Junior minister for energy Pradeepsing Jadeja said people will have to make one-time settlement to the tune of Rs 500 to avail the benefits.
The Assam government said the waiver would benefit 8 lakh farmers in the state. The decision was taken at a cabinet meeting held on Monday night. “To encourage farmers who are paying their loans on time, we have decided to write off 25% of their debt up to a maximum of Rs 25,000,” said cabinet minister Parimal Suklabaidya.
“We have taken other decisions too. For example, the 4% interest burden on those who are paying their Kisan credit card loans on time will be reduced. We are also assessing the number or farmers who are not using their cards because they have Rs 3,000 to Rs 10,000 pending on it and see how we can help them,” Suklabaidya said adding that it was a budgetary promise. “We took time because we wanted to do it properly,” he said.
The government has also sanctioned an interest relief scheme which will enable around 1.9 million farmers to take loans at zero interest from the next financial year, he said.
The state Congress questioned the timing of the state government’s decision. “They have only done it after Rahul Gandhi made it an issue,” said Ripun Bora, president of Assam Pradesh Congress Committee. “Why are they waking up now? Our governments in Chhattisgarh and Madhya Pradesh decided to waive off loans within minutes of taking oath.”
In Gujarat too, the Congress was quick to term the government’s move as a poll sop. “The announcement is done considering the December 20 Jasdan bypoll. If the BJP government is really concerned about the farmers, it should waive farm loans,” said Congress leader Alpesh Thakor.
The Bhartiya Kisan Sangh (BKS) welcomed the decision but maintained that it doesn’t address the demand for a farm loan waiver. “Not all connection holders are farmers. And it is not sufficient. The BKS will still continue to demand loan waiver ,” said BKS general secretary Praful Sengalia.
“This is a poll gimmick and also violation of model code of conduct as Jasdan by-poll is just a day away. Farmers are hardly to be benefited ,“ political analyst Hari Desai said.
Monirul Hussain, the chair professor Centre for North East Studies and Policy Research Jamia Millia Islamia, said “This kind of waiver is more of symbolism since other states have waived off a bigger amount.”
According to Ashok Gulati, a professor at the think-tank ICRIER, subsidies and sweeping doles, which have always hogged a greater share of budgetary support to farming, will further limit the ability of governments to make public investment necessary for long-term growth in the farm sector.
Farmers across India are in the midst of an agrarian crisis caused largely by bumper harvests and poor market linkages. they have been demanding farm loan waivers. The Congress promised farm loan waivers in Chattisgarh, Rajasthan and Madhya Pradesh within 10 days of coming to power.
Karnataka, Maharashtra, Uttar Pradesh and Punjab have already announced farm loan waivers.
