TS goes bond route to implement loan waiver
Hyderabad: With the Reserve Bank of India (RBI) not entertaining the State Government on the loan waiver issue, the Telangana government has dropped hints of issuing bonds to farmers in the state.
According to sources, even though the TRS government is keen to implement the decision on loan waiver, it is unable to raise the required funds to bail out farmers. Instead, it is planning to give bonds to farmers. Sources said that farmers would have to re-pay loans and get a certificate from the banks.
These certificates need to be produced to government which in turn will issue bonds to all farm-waiver beneficiaries. These farmers can exchange the bonds in the near future.
The government is also mooting the proposal of releasing a part of the total amount so as to clear the loans of small farmers. The total loan amount to be waived in Telangana would come around Rs 18,000 crore and the government is proposing to release Rs 5,000 crore as the first installment. With this amount, farmers with smaller loan amounts under Rs 40,000 can avail of the scheme in the first installment, said sources.
News Posted: 18 August, 2014
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