State government intends to start the 2 lakh crop loan waiver programme by July 27

The state government intends to start the `2 lakh crop loan waiver programme by July 27 and wrap it up by August 15, the deadline set by Chief Minister A. Revanth Reddy. Farmers whose loans were not waived by the BRS government will also be included in the scheme. Besides, about 13 lakh farmers whose dues were not waived by the previous BRS government will also benefit. The government has set a cut-off date of December 13, 2018.

The government has drafted an action plan for the purpose, and will be presented to the Cabinet for approval next week. According to an estimate, `25,000 crore was required to the waive loans in one go, and the state government was exploring options to moblise the funds. One of the means was to approach the Reserve Bank of India to raise funds in advance through open market borrowings by relaxing the monthly limits.



The other option was to mortgage government land with banks.

The Congress government is planning to adopt the norms being followed by the Centre to determine eligibility for the PM Kisan Samman Nidhi scheme. If it comes through, serving and former MPs and MLAs, income-tax payers, serving or retired government employees and those with a monthly pension of `10,000 or more will not be eligible for the benefit. 

However, the government is considering to extend the benefit to those filing income-tax returns. If implemented, it would reduce the number of beneficiaries and the financial burden some extent.

The Congress government now wants to come to the rescue of these 13 lakh farmers who were left in the lurch by previous BRS government.