Telangana government gets rap on loan waiver promise

Agriculture Minister P. Srinivasa Reddy clarified that the government has not taken any decision on cut-off date. "This will be decided only after talks with the banks. The final decision will be taken in the cabinet," he said.

Chief Minister K. Chandrasekhara Rao Wednesday held a meeting with the top bank officials to discuss implementation of the poll promise. He had asked the banks to submit details of the outstanding farm loans.

After the meeting, Finance Minister E. Rajender said that the loans taken after June 1 last year would be waived.

According to officials, waiving off all crop loans of up to Rs.1 lakh will entail a burden of Rs.25,000 crore on public exchequer. If the scheme is restricted to last financial year, the burden can be halved.

The chief minister told a public meeting in Medak district Wednesday that the loan waiver scheme will be implemented in 10 days and this will benefit 23 lakh farmers.