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On the eve of Independence Day, Chief Minister of Telangana, K Chandrasekhar Rao, has announced a complete waiver of farmer loans up to ₹1 lakh, effective immediately, fulfilling the promise he made prior to the state elections in 2018.
The Chief Minister stated that farmers who have taken loans of less than ₹1 lakh will be relieved from their debt burden and has directed the repayment of loan amounts up to ₹99,999 to the banks.
Ramakrishna Rao, the Special Chief Secretary to Finance, issued instructions to this effect on Monday.
The Chief Minister noted that the funds will promptly be deposited in the banks on behalf of the farmers.
Following Chief Minister KCR's instructions, the finance department released ₹5,809.78 crore on Monday, benefiting 902,843 farmers. This amount will be deposited in the farmers' accounts as part of the loan waiver.
The Chief Minister outlined that the loan waiver would be implemented in phases. He instructed the officials of the Agriculture and Finance Departments to correspond with the banks and acquire comprehensive details. The entire process took a year to complete.
Due to the pandemic, lockdown, and the repercussions of demonetization, the Telangana government encountered significant difficulties in mobilizing resources.
Nevertheless, the government has already disbursed ₹1,943.64 crore to the banks in support of 719,488 farmers who borrowed up to ₹50,000. This sum has been adjusted within the loan waiver accounts.
Recently, ₹5,809.78 crore has been released for the loan waiver of farmers who owe up to ₹99,999 to the banks.
On August 2nd, KCR conducted an extensive review of the agricultural sector and farmer loan waivers, announcing the implementation of the farmer loan waiver scheme. Clear instructions were provided to officials to complete the loan waiver process within 45 days.
Finance Minister T Harish Rao also issued a Budget Releasing Order (BRO) on August 3rd, following the Chief Minister's directions. The release of loan waiver funds commenced on August 3rd. In accordance with the Chief Minister's guidance, new orders were issued to settle debt amounts up to ₹99,999. With this latest decision, a total of 1,666,899 farmers in the state will benefit.
From the day Chief Minister KCR reviewed and announced the farmer loan waiver on August 2nd, Finance Minister Harish Rao and Special Principal Secretary of the Finance Department Ramakrishna Rao developed and executed a 45-day action plan. This plan involved daily reviews and meetings with bankers to implement the loan waiver scheme.
On August 3rd, ₹237.85 crore was disbursed for 62,758 farmers who had taken loans up to ₹41,000. Likewise, on August 4th, ₹126.50 crore in loans were waived for 31,339 farmers with loan amounts under ₹43,000, and these funds were deposited in their bank accounts. The latest loan amounts up to ₹99,999 were also deposited. The total number of farmers with loans up to ₹99,999 is 902,843. The government will provide ₹5,809.78 crore to the banks for this purpose, leading to a total payment of ₹7,753.43 crore to 1,666,899 farmers under the loan waiver scheme.
Telangana takes pride in its farmer-friendly policies. Under Mission Kakatiya, 35,000 abandoned ponds and water bodies were restored, and the multipurpose project Kaleshwaram was constructed.
The farmer loan waiver scheme is reported to have benefited 3,532,000 farmers. The government invested ₹16,144 crore.
To date, ₹7,753.43 crore in farm loans have been waived, benefiting 1,666,899 farmers.
The government also introduced the Rythu Bima Scheme to provide financial security to the families of farmers in case of any reason leading to their death.
The government covers the premium amount. The scheme has provided support to the families of 108,051 deceased farmers in the state, with an insurance payout of ₹5,402.55 crore.
Telangana also claims to be the sole state in the country offering 24-hour free high-quality electricity to farmers. Free power is provided to 2,749,000 agricultural connections in the state, costing the government ₹96,288 crore over the past nine and a half years.
The government reports that it has spent ₹32,700 crore for the development of basic facilities in the power sector.
The direct cash transfer scheme, aimed at financing agricultural inputs, is called Rythu Bandhu. The government states that 6.5 million farmers have benefited, and ₹71,552 crore has been deposited in farmers' accounts over 11 installments, each of ₹10,000 per acre.
