Maharashtra ups the limit of loan waiver from 1 lakh to Rs 1.50 lakh per farmer

MUMBAI: Maharashtra Chief Minister Devendra Fadnavis has announced the ‘biggest ever’ loan waiver in the state upping the loan waiver limit from Rs 1 lakh to Rs 1.50 lakh per farmer.

Announcing the decision Fadnavis said that 90 per cent of the farmers will be benefitted from the move. Calling the decision ‘historic and unprecedented’, Fadnavis who chaired a cabinet meeting on Saturday cleared the move, the Chief Minister said that the state would cost the state around Rs 34,000 crore.

The Chief Minister admitted that the state will have to face a huge burden under the scheme called, ‘Chhatrapati Maharaj Krisha Samman Yojana’.

He admitted that the state would face a huge financial burden due to this exercise as the state already has a debt of 3.56 lakh crore.

“I am aware that a huge burden will fall on us, we will have to allocate less money to other departments. However, the government has taken a decision and we are standing strongly behind this decision.” said the Chief Minister.

Fadnavis said that the state would not be able to completely pay off the farmers loans owed to the banks in one go and hence would initiate talks with the banks for a staggered payment.

Aware that farmers were demanding for a complete loan waiver of their entire loan, the Chief Minister said, “ We can’t take more than this burden. Even the current loan waiver is very difficult for us, it is the biggest loan waiver in the country.”

He also added that the government in a bid to encourage farmers who have been paying off their loans would deposit money in their accounts. The money deposited would be 25% of their loan amount but would not exceed Rs 25,000.

The Chief Minister said that he is aware that certain groups would not be happy with the decision but expressed optimism that farmers would not support any future stir.