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Telangana chief minister K Chandrasekhara Rao (KCR) on Friday declared his government would implement the farm loan waiver up to Rs 1 lakh as promised in the elections without any conditions.
The marked change in KCR’s stance comes after the government’s plan to restrict the scheme only to loans taken during the 2013-14 agriculture year met with a stiff resistance from farmers and Opposition parties.
Replying to a discussion on the motion of thanks to the Governor's address on the floor of the House, the chief minister said his government would even waive gold loans taken for the purpose of cultivation.The decision will benefit 2.6 million farmers in Telangana, according to him.
After contemplating the restrictions, the government claimed the total size of loans eligible under the scheme would not exceed Rs 10,000 crore as compared with Rs 26,000 crore crop loan outstandings, including gold loans, according to bankers' data.
However, the government believes that the total liability arising out of the today's decision would be around Rs 16,000 crore.
It may be recalled that farmers in several places burnt the effigies of KCR and even pulled down the ruling TRS party's flags in protest against the conditions imposed by the government.
