Telangana to spend Rs 31,000 crore to waive off farm loans up to Rs 2 lakh

Hyderabad, June 21: The Congress government in Telangana on Friday decided to waive loans of farmers to the tune of Rs 2 lakh by spending Rs 31,000 crore to implement its election promise. 

The decision to waive the farm loans in one go was taken at the state Cabinet meeting chaired by Chief Minister A. Revanth Reddy.

The Chief Minister told media persons after the Cabinet meeting that a decision was taken to waive farm loans taken between December 12, 2018 and December 9, 2023.

He also declared that the loans would be waived in one go, unlike the previous government of Bharat Rashtra Samithi (BRS) which waived loans of up to Rs1 lakh in four instalments.

Revanth Reddy said while the previous BRS government, in its two terms between 2014 and 2023, waived loans of up to Rs 28,000 crore, the Congress government would spend Rs 31,000 crore. He recalled that the promise was made in the farmers’ declaration unveiled by party leader Rahul Gandhi at Warangal on May 6, 2022. He said by implementing the promise, the government would send a clear message that agriculture is a festivity and not a loss-making profession.

Revath Reddy said while the previous government in 10 years did not fulfil promises made to farmers, the Congress government was implementing its promises in eight months.

The government also constituted a Cabinet Sub-Committee headed by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka to work out modalities for implementing Rythu Bharosa.

Under the scheme, the Congress had promised to enhance investment support to farmers to Rs 15,000 per acre annually from Rs 10,000 being given currently under the Rythu Bandhu scheme of the previous BRS government.

Agriculture Minister Tummala Nageswara Rao, Congress election manifesto committee Chairman and Industry Minister D. Sridhar Babu, and Revenue Minister Ponguleti Srinivas Reddy are the members of the Cabinet Sub-Committee.

Revanth Reddy said the Cabinet Sub-Committee will hold discussions with all stakeholders including farmer groups, agriculture workers and political parties to prepare a report. The Sub-Committee will submit the report to the government by July 15 and the same will be tabled during the coming Budget session of the Assembly for a thorough debate.

The government will prepare a policy to implement the scheme. He assured that every eligible farmer would get the benefits under Rythu Bharosa. The Chief Minister reiterated that the Congress government was committed to implementing all the welfare schemes promised by it. He alleged that opposition parties were running false propaganda to create apprehension among people.