Loan waiver scheme: U.P. to reopen abruptly closed scheme to accommodate remaining farmers

Loan waiver scheme: U.P. to reopen abruptly closed scheme to accommodate remaining farmers

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Loan waiver scheme The Yogi Adityanath government is preparing to open the debt repayment scheme, with the sole aim of assisting farmers who were not able to benefit from the scheme previously even though they were qualified.

People who are aware of the situation reported that there were about five thousand marginal and small-scale farmers whose loans for crops were not repaid even though they were eligible before this scheme abruptly ending in September of 2019.

According to them, a lot of the farmers have made an application to the Supreme Court, asking the government to cancel their loans by the conditions and terms of the debt-redemption program which was announced in March 2017.

In a meeting facilitated by the chief Secretary Durga Shanker Mishra, two weeks ago the decision was made that the government would provide for the funds in the supplementary budget for September-October to erase the loans of all remaining farmers.

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Also, it was decided to settle the demands of farmers who filed a complaint with the courts before the budget was supplementary because the cases were set to be heard in July and August.

“We have already informed the high court that the government will write off debts of all the eligible farmers whose petitions are pending in the court and we are going to do it shortly,” an official in the top position told the.

“The government will waive off crop loans of all the remaining farmers after allocating the supplementary budget in the months to come,” said the minister.

In the scheme of debt redemption, which was announced by the Yogi Adityanath’s government announced right away following its election at the end of March 2017, loans amounting to Rs1 lakh from individual marginal and small farmers whose loans were given by lenders before the 31st of March, 2016 were eligible for exemption.

The banks initially provided a list of about 66 lakh farmers, but the number was later reduced to 45 lakh following the bank conducting a thorough examination to identify farmers who are eligible to participate in the program as per guidelines.

The government abruptly announced the closing of the program in September after having waived the crop loans in the amount of Rs25,000 crore to about 45 lakh small and marginal farmers.

“While the government shut the scheme without any advance notice, thousands of complaints or claims remained unsettled, when the scheme was closed after the budget earmarked for the scheme for the year got exhausted,” an official from the department of agriculture said.

It is now thought that the government could need to set aside an amount that exceeds Rs200 crore in the budget surplus to pay the remaining claims for loan waiver and also write off the amount of 8 lakh against the dozen farmers who filed a petition within the court of appeal.

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