Proposal to clear rural debt on anvil

That rural debt has engulfed the entire state has been admitted to by none other than Punjab Chief Secretary K R Lakhanpal. Yesterday he said the state government would stress one-time settlements of rural debt on the pattern of the scheme for industrial debt.

"The state is drafting concrete proposals for the Centre to clear rural debt, and it will be submitted by the end of the month. And after getting approval, Chief Minister Amarinder Singh will take up the matter with Union Agriculture Minister Sharad Pawar," Lakhanpal said.

Lakhanpal said suggestions include one-time settlements for agricultural loans or waivers of interest on rural debt.

"Rural debt in the state is about Rs 24,000 crore, which includes loans from co-operative banks, arhtiyas and nationalised banks," he said, adding that as far as loans from co-operative banks and arhtiyas were concerned, the state could do something, but nothing could be done without the help of the Centre on loans from nationalised banks.

Lakhanpal regretted the power crisis in the state.