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Haryana CM announces Rs. 4,750 cr package for debt-ridden farmers
About 10 lakh farmers – who had taken loan from primary agriculture cooperative societies (PACS), district cooperative central banks (DCCB) and Land Mortgage Bank (LMB) would be benefited.
In a move to mobilise farm community, Haryana chief minister on Monday announced a package of Rs. 4,750 crore for farmers. He waived off penalty and interest on crop loans taken from cooperative banks.
“About 10 lakh farmers – who had taken loan from primary agriculture cooperative societies (PACS), district cooperative central banks (DCCB) and Land Mortgage Bank (LMB) would be benefited,” he said during a press conference in Bhiwani.
“Of 13 lakh farmer loans from PACS, 8.25 lakh have become non-performing assets. They pay 7% interest, in which state government pays 4% and 3% is paid by the central government through a scheme. In case of a failure, a 5% penalty is also imposed but we are waiving off the penalty also,” he said.
“3% amount is paid by the central government through a scheme and from now on the government will pay 1.5% and the remaining 1.5% will be borne by PACS. Full interest and penalty have been waived off and farmers will have to pay only the original loan amount,” he said.
He further claimed that this move will give a benefit of Rs. 2,500 crore to borrowers of PACS.
“About 85,000 farmers will be benefitted as we have announced Rs. 1,800 crore to waive off penalty on crop loans, taken from district cooperative central banks (DCCB). Of 85,000, 32,000 accounts have become NPAs. Farmers who have taken loan of Rs. 5 lakh will now have to pay only 2% interest instead 12-15%,” Khattar said.
He claimed that the farmers who have taken loans of Rs. 5 to Rs. 10 lakh will pay 5% interest while more than Rs. 10 lakh borrowers will have to pay 10% before November 30, their penalties have been waived off.
Announcing the same scheme for Land Mortgage Bank borrowers, Khattar said, “Of 1.5 lakh borrowers, 70,000 loans have become NPAs. The total amount is Rs. 1,400 crore. The principal amount is Rs. 700 crore. We have waived off penalty and farmers will only have to pay 50% of the interest. The rest 50 will be paid by the government. The scheme will cost Rs. 450 crore.”
OPPOSITION CALLS IT A STUNT
Interacting with media in Rohtak, Swaraj India president Yogendra Yadav said the farmers are demanding waiver for the whole loan amount and not just interest.
“The state government has been trying to befool people by making an announcement. Where is the notification that Haryana government has waived off penalty and interest on crop loans,” he added.
Former CPS and Congress leader Ran Singh Mann said that this scheme will benefit only those farmers who have taken loans from cooperative banks.
“Most of the farmers have taken loans from Haryana Gramin Bank, State Bank of India, Punjab National Bank and Allahabad Bank. If the government has an intention to waive off interest on crop loans, then they should cover these farmers also. This move was taken just to divert the mind from farm issues,” he said.
