Andhra Pradesh Government had issued an instruction to banks to give details of farmers complying 30 factors on 14th of August. Bankers were also trained regarding how to extract this data. A government source says the government had managed to get funds worth 25000 Crores ready for loan waiver and is ready to issue the fund to banks when the details arrive.
The source tells us that the delay of the loan waiver is only due to the bankers but not the government. They say the waiver will be carried out by October 2nd if the bankers are ready. Chief Secretary of Andhra Pradesh government, IYR Krishna Rao is meeting Reserve Bank of India Governor Raghu Rama Rajan on Monday on loans reschedule issue.
It is known that Loan Waiver to farmers is the prime election promises of Telugu Desam Party before the elections. After assuming power, Chandra Babu Naidu had announced a loan waiver amounting to 1.5 Lakhs per family which will make about 97% of the families debt free. Chandra Babu is also waiving off loans to the extent of 1 Lakh to each DWACRA group and weavers. The waiver will be a huge burden to the deficit state budget.
