KCR writes to RBI on loan waiver
Hyderabad: Trying to find a way out of the crop loans issue, the Telangana government has sought rescheduling of them from the banks and attempts are being put to secure approval to the proposal.
The government has written a letter to the Reserve Bank of India in this regard and is waiting for the response. Since RBI has given its approval to Andhra Pradesh government for rescheduling of loans, Telangana government is expecting same relief.
In the letter, written to RBI, government has stated that due to financial problems being faced by it was unable to clear the crop loans being obtained by the farmers, rescheduling of loans would be of immense help to the farmers and to the government.
According to official sources, the total amount of crop loans adds up to Rs 17,300 crore, including dues from 2008. Loans taken last year add up to Rs 14,000 crore out of which Rs 3,000 crore are gold loans. The government has declared 323 as drought hit and proposed to the RBI to reschedule the loans of the farmers of these mandals.
This would give relief to the extent of Rs 4,000 crores in the last years' loans. Economic experts said that Reserve Bank of India may accept rescheduling of loans for the previous financial year and may not consider the dues.
The arrears amount to Rs 3,000 crores and the government has to bear them at any cost. If RBI accepts the government's proposal for rescheduling, it may hold off the loans of last year for three, five and for seven years.
However, it may not accept the gold loans' rescheduling. Government would have to bear the arrears of Rs 3,000 crores and gold loans of Rs 3,000 crores which amounts to Rs 6,000 crores.
This burden would fall on the government eventually. The government is in a hurry to bring the crop loans issue to its logical end by the time of the budget presentation.
Already opposition parties have begun bringing pressure on giving clarity on the loan issue. The ruling party would face a tough time in the Assembly session if it could not come out with an announcement. RBI's response would give some clarity to the government to what extent it can get the relief in the form of rescheduling.
News Posted: 12 July, 2014
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