Telangana Government to sell lands for Loan Waiver

The Loan Waiver promise will not only burden the Andhra Pradesh government but also the Telangana state even with the surplus budget. Reserve Bank of India is yet to give official nod for the reschedule of agriculture term loans during 2013-14. This will only give a relief of 5000 Crores in the total Rs. 17,337 crore credit. Besides there are also gold loans worth another Rs. 1,800 crore loans.

So, Telangana state will have to bear the burden of loan waiver to the extent of over Rs. 14,000 crore (Rs. 12,337 crore for unpaid crop, agriculture term loans and Rs. 1,800 crore for gold loans) in the current financial year. So far only 337 mandals of Telangana are only covered under the scheme and Telangana Government has requested RBI also the consider the loan rescheduling in the remaining 77 mandals.

KCR’s government is thinking on the lines of auctioning few Government lands which are liable to encroachments to get money for the loan waiver. Government is also planning to improve the income from VAT collection through various sources.