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Fadnavis Announces Rs 34,000 cr Loan Waiver For Maharashtra Farmers

File image of  Maharashtra Chief Minister Devendra Fadnavis. (Image: PTI)

File image of Maharashtra Chief Minister Devendra Fadnavis. (Image: PTI)

Maharashtra Chief Minister Devendra Fadnavis on Saturday announced a scheme, providing Rs 34,000 crore debt relief to farmers.

New Delhi: Maharashtra Chief Minister Devendra Fadnavis on Saturday announced a scheme, providing Rs 34,000 crore debt relief to farmers.

Claiming it to be the largest loan-waiver in the history of India, Fadnavis acknowledged that loan-waiver will burden the State treasury. "We may have to cut down on some work. But, we are committed to helping the farmers in distress," Fadnavis said.

The Chief Minister also informed that all the ministers and MLAs will give their one month salary to support the loan waiver.

Farm loans of up to Rs 1.5 lakh each will be waived, Fadnavis said, adding that farmers who paid their loan instalments on time will be given a waiver of 25%.

On June 11, Maharashtra farmers had called of their protest after the state government promised to waive off all loans on Sunday.

The government’s decision came after the farmers’ agitation for a loan waiver entered its 11th day.

Earlier, Karnataka Chief Minister Siddaramaiah had announced his decision to waive off farm loans up to Rs 50,000 which were taken from co-operative banks till June 20, costing the state exchequer Rs 8,165 crore.

The Yogi Adityanath government in Uttar Pradesh had also approved waiver of farm loans up to Rs 1 lakh, fulfilling a major election promise made by the BJP.

However, the Centre has ruled out any waiver of farm loan and said it will adhere to fiscal targets. On Tuesday, Finance Minister Arun Jaitley said the Centre is not considering any such plan.

Jaitley had said the Centre will not fund any of the loan waivers by states and they will have to find their own funds for doing so.

The government had in 2008 waived farm loan to the tune of Rs 74,000 crore.

first published:June 24, 2017, 16:51 IST