Andhra govt seeking funds to implement mega loan waiver

Desperate to keep its pre-poll promise of loan waiver to farmers, the Andhra Pradesh government is seeking funds from different quarters to go ahead with the financially debilitating scheme.
"The Andhra Pradesh Government open for funds for rythu runamaafi (farmers' loan waiver)," an official statement said here tonight.
As a "first step", the Sri Venkateswara Shop Owners Association of Tirumala presented a cheque for Rs 3 lakh to Chief Minister N Chandrababu Naidu at his camp office here today, it added.
No more details, however, were given in this regard, but Agriculture Minister P Pulla Rao said the Government is making all efforts to implement the loan waiver.

A staggering Rs 40,000 crore is required for the loan waiver schemes for farmers and also women self-help groups (SHGs). These were the first two files that Naidu signed immediately after taking oath as Chief Minister on June 8.
Despite repeated pleas for financial assistance in one form or the other, the Centre did not release any special grants to the State, where TDP is in power with BJP.

The Government's hope to get the farm loans rescheduled in the name of natural calamities did not bear fruit as RBI took a tough stand. After a lot of persuasion, RBI agreed to reschedule crop loans only in a few mandals in four districts, not giving much relief to the Government.

Efforts to sell red sanders in the international market and secure funds for the loan waiver also did not fructify as the auction process has been put off.
The Government made a provision of only Rs 5,000 crore in the Budget, hardly sufficient to meet the requirements.
Farmers are agitated as banks have been denying them fresh loans due to non-repayment of old ones. The Government is yet to set the timeline for completing the waiver process.
"We are exploring all means and options to fulfil our promise," was all AP Ministers have been repeatedly saying.
Though they are admitting in private that pooling up funds has indeed become the main hurdle, they are unable to come out with any clear assurance.

"We are not getting adequate co-operation from the RBI but still we are making all efforts to implement the loan waiver," the Agriculture Minister said.
Against this backdrop, today's statement indicates the Naidu administration is now seeking donations from different quarters, just as it opened a special account for "donations" for construction of a new capital.