Assam govt makes U-turn on debt waiver, calls it 'subsidy scheme'

A day after the Assam government announced a Rs 600-crore partial farm loan waiver scheme, Finance Minister Himanta Biswa Sarma Wednesday clarified that it was a temporary reprieve that will benefit four lakh farmers in the state.

Assam government spokesperson and Parliamentary Affairs Minister Chandra Mohan Patowary had said Tuesday that the farm loan waiver scheme was approved by the cabinet to write off 25 per cent (up to Rs 25,000) of all farm debts till date.

The state government would also have to do budgetary provisions for the next fiscal, Patowary had said.

Addressing a press conference here, Sarma said: "It is a subsidy scheme, not a debt waiver scheme. For the loans taken only between April 1, 2018 and Match 31, 2019, 25 per cent of the total amount with a cap of Rs 25,000 will be subsidised by the government."
When pointed out about Patowary's claims, Sarma said, "Because of his press meet, I have come today to address you. It is a finance scheme. Whatever I said, it is final."
Even the press information shared by the chief minister's PR cell in its official WhatsApp group had said: "Debt Relief scheme 25% of loan amount waiver up to maximum of Rs 25,000."
Regarding the scheme, Patowary had said: "There is also an interest relief scheme of up to four per cent for the farmers. There will be interest relief from the state government so that farmers get crop loan at zero interest from the next financial year."