Loan waivers will disrupt economy, warns JP

Hyderabad, March 29 (INN): Loksatta Party national President Jayaprakash Narayan today lashed out at political parties in both Telangana and residuary Andhra Pradesh for promising loan waivers in their bid to lure voters in the upcoming elections.

'Who has given them the right to squander away money collected from tax payers on loan waivers and disrupt the entire banking system and the economy,' Dr. JP asked at a media conference.

JP said the Loksatta Party would soon draw the attention of the RBI and the Election Commission of India to the irresponsible promises being made by political parties.

He said that he could understand offer of incentives for prompt payment of loans but not loan waivers. Agriculture continues to be in a crisis although the Union Government had waived loans worth Rs.65000 crore just five years ago.

Farmers could be helped by ensuring remunerative prices for their produce and facilities like warehouses and cold storages. Loksatta ensured good Price for paddy farmers by fighting against illegal trading restrictions, and for allowing exports. India today is the largest exporter of food grains, thanks to Loksatta's struggle. that is the way to help farmers, not loan waivers.

JP said the most important challenge before the country is providing jobs to youth in the manufacturing sector. While China created 20-25 crore jobs, half of them in the manufacturing sector, in the last two decades, India even today has just 80 lakh workers in the entire manufacturing sector.

India has to create nearly a crore of jobs every year in the manufacturing sector for the next 10 years keeping in mind that nearly 1.5 crore people of working age are joining the ranks every year.

With China gradually exiting from low-end manufacturing because of ageing population and increase in wages, India can grab the opportunity and become the next workshop of the world. If India fails to do so, it will slip into middle ages with unrest and anarchy breaking out.

India has lost a decade of opportunities because of the UPA Government's failure to provide the necessary infrastructure and clearances for manufacturing to thrive and provide jobs to youth. As of today, projects worth Rs.10 lakh crore remain stalled.

He pointed out that both Telangana and residuary Andhra Pradesh need huge investments, which come by way of equity and bank loans. The Reserve Bank of India would clamp down on bank loans if State Governments persist with loan waivers.

JP said the Loksatta has decided to join hands with the BJP because its Prime Ministerial candidate has laid emphasis on economic development, provision of jobs for youth and good governance. He would appeal to other parties in the two States too to focus on ensuring a bright future for youth and desist from perpetuating politics of dynasty and corruption.

The Loksatta Party is prepared to enter into electoral alliances with other parties interested in promoting national interests. He underlined the importance of arriving at such adjustments soon as time is running out.