Finally, Andhra Pradesh CM Chandra Babu Naidu has taken a step towards settling the issue of loan waivers.
During the first phase, the TDP government has decided to waiver loans up to Rs 10,000 crore.
It is a known fact that after promising loan waivers during election time, the TDP government did little to fulfill its promise.
But owing to increasing public pressure and criticism from the opposition parties, it is being forced to look into the matter with utmost urgency.
However, given the present financial situation in Andhra Pradesh, it is not a small task for the government to dole out Rs 10,000 crore.
In fact, it is a critical issue as to how the government will get the money in the first place.
Though it was said that it was planning to sell red sandalwood, nothing has materialized as yet. Given this situation, even if the government manages to get Rs 10,000 crore, it will still have the humongous task of settling the issue of loan waivers by December.
At the least, the farm loans are likely to add up to nothing less than Rs 1,00,000 crore. Despite assurances from officials that the government is committed to loan waivers, it is finding it extremely difficult to generate Rs 10,000 crore at the end of four months. So, how will it manage to get Rs 80,000 crore in the remaining two months?
Either Babu must have a magic wand or he might push the deadline further in December – either ways, the farmers are happy that the process has finally begun.
