Centre approves Rs 530 cr for interest waiver on farm loans

NEW DELHI: Government today approved release of Rs 530 crore towards waiver of interest on agriculture loans in 31 debt-ridden districts of four states.

The decision to release additional Rs 530.06 crore towards waiver of accrued interest in 31 districts of Maharashtra, Andhra Pradesh, Karnataka and Kerala was taken by the Union Cabinet, Information and Broadcasting Minister Priya Ranjan Dasmunsi said after the meeting.

"The decision would benefit the borrowers whose loans were overdue as on July 1, 2006 in these debt-stressed districts," he said.

The approved fund would be the final share of the Centre towards such waiver. The Centre has already paid Rs 1,359 crore out of its total commitment of Rs 1,889 crore.

The total outlay on the waiver scheme, including the share of the states, was Rs 3,778 crore.