Telangana government finalising modalities for farm loan waiver scheme

HYDERABAD: The state government is in the process of expediting the formulation of modalities to implement the farm loan waiver scheme.

While the finance department is working on mobilising funds, the Agriculture department, along with other related ministries, is formulating the modalities and guidelines.

It may be recalled that Chief Minister A Revanth Reddy announced that his government will implement this scheme by August 15. As per his directions, officials are speeding up the process.

Sources said that to identify the eligible farmers, the government is likely to adopt the guidelines that were followed by the previous BRS government when it launched a similar scheme to waive farm loans.

During a recent meeting, the Cabinet decided to waive loans availed by farmers from December 12, 2018 to December 9, 2023.

Sources stated that this scheme will be applicable to farmers who took short term loans up to 18 months and not for the long term loans.

The government is likely to consider family as one unit while implementing this scheme, they said.

“By taking ration card as a base, the agriculture assistant extension officers (AEO) will decide the eligibility of farmers,” they added.

As per preliminary estimates, the government requires Rs 31,000 crore to implement the scheme.