Haryana approves scheme for loan settlement

The Haryana Cabinet today approved a One Time Settlement (OTS) scheme for loans taken by farmers from the the Cooperation Department.
The cabinet, headed by Chief Minister Bhupinder Singh Hooda, approved the Recovery Linked Incentive 2013 scheme of Haryana State Cooperative Agriculture and Rural Development Bank (HSCARDB).
The Recovery Linked Incentive (OTS) Scheme of HSCARDB will cover those defaulters of District Primary Cooperative Agriculture and Rural Development Bank (DPCARDB) in the state who borrowed loans under any scheme except Purchase of Land Scheme, an official release said here.
The scheme will cover those defaulters of DPCARDB who could not clear their installments of principal and interest due to certain reasons since June 30,2013.

If a defaulter clears his principal amount due upto June 30, 2013, along with 50 per cent of entire interest liability inclusive of overdue interest up to June 30, 2013, then he will be eligible to avail remission of the rest of the interest liability inclusive of overdue interest.
Defaulters will have to pay the amount in the respective DPCARDBs and their branches on or before January 31, 2014 to avail the relief.

As on June 30,2013, there were 1,23,245 defaulters against whom the liability amounted to Rs 1,136.50 crore of which principal due stood at Rs 605.81 crore and overdue interest amount stood at Rs 530.69 crore.

If all the 1,23,245 defaulting farmers avail of this scheme, the state will have a liability of Rs 265.34 crore on account of remission of 50 per cent overdue interest, excluding the amount pertaining to Purchase of Land scheme.
The penal interest on the outstanding dues up to June 30, 2013 will be waived off and borne by DPCARDBs and HSCARDB on equal sharing basis, the release said. The government will not reimburse any amount in this regard.
The scheme will come into force from November 10, 2013 and will be closed on January 31, 2014.