Crop loan waiver scheme has a bumpy ride in Kashi | lucknow | Hindustan Times
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Crop loan waiver scheme has a bumpy ride in Kashi

Disbursal of loan to nearly 400 farmers hung in a balance due to the bank’s delay in completing necessary formalities as desired under the rules of the scheme.

lucknow Updated: Oct 12, 2017 12:31 IST
Umesh Raghuvanshi
Umesh Raghuvanshi
Hindustan Times, Lucknow
Crop loan waiver,Bumpy ride,Varanasi
The Yogi government’s crop loan waiver scheme is expected to cause a financial burden of about Rs 36000 crore (including the NPAs) on the state exchequer.(HT File Photo)

The Yogi Adityanath government’s crop loan waiver scheme faced a bumpy ride in none other than Prime Minister Narendra Modi Lok Sabha constituency Varanasi .

So much so that Varanasi district magistrate Yogeshwar Ram Mishra had to write to higher ups in New Delhi complaining about the lackadaisical attitude of the officials of a nationalized bank. “Officers of a nationalised bank did not take desired interest in implementation of the scheme. I tried to get in touch with senior officers of the bank and they remained inaccessible. So, I wrote to joint secretary (banking) of the union finance ministry. This intervention from the centre helped in expediting implementation of the scheme now,” said Mishra on phone.

Disbursal of loan to nearly 400 farmers hung in a balance due to the bank’s delay in completing necessary formalities as desired under the rules of the scheme. The state government proposes to transfer most of the loan waiver amount to banks by October 16 (before Diwali) and third phase of distribution of loan waiver certificates to farmers is scheduled to begin on October 23 .

In some other districts, the implementation of scheme faced hurdles from its own revenue officials. In August 2017, the district magistrates of Mathura and Gonda placed six revenue officials under suspension and ordered filing of a criminal case against them when they demanded bribe from farmers for verification of their accounts. A decision to lodge a criminal case against those seeking bribe in these districts apparently had positive results and the scheme saw smooth implementation in most other districts.

The Yogi government’s crop loan waiver scheme is expected to cause a financial burden of about Rs 36000 crore (including the NPAs) on the state exchequer. The state government is funding the scheme from its own resources. It is expected to benefit nearly 86 lakh small and marginal farmers of Uttar Pradesh.

Read more| Maharashtra loan waiver: 12 lakh rich farmers excluded from benefit owing to norms

On Monday, the state cabinet had approved one time settlement (OTS) scheme to write off Non Performing Assets (about Rs 1893 crore) of cooperative banks . Under the OTS, the state government will provide 75 percent amount while banks will waive the remaining 25 percent to write off the NPAs. The state government will now send the OTS to commercial banks for approval to write off their NPAs of about Rs 2506 crore. “We hope commercial banks will approve the OTS soon,” said Infrastructure and Industrial Development Commissioner (IIDC) Anoop Chandra Pandey who is associated with implementation of the crop loan waiver scheme.

Pandey said all the loan waiver amount will be transferred to the banks by October 16. “We will transfer all the loan waiver amount of third phase to the banks by October 16. The state government will thereafter expedite action to writing off the NPAs of commercial banks as well,” said