VIJAYAWADA: The State government, which deposits one instalment a year as debt redemption for farmers, was planning to dole out three instalments this year. But owing to lack of clarity on state finances post GST, it has temporarily withdrawn the plan. However, like other years, one instalment will be deposited and it will be done within this month.
Chief Minister N Chandrababu Naidu, during the 2014 elections, promised to waive the crop loans of farmers. After forming Farmers Empowerment Committee, the government announced that farmer families whose outstanding amount is under Rs 50,000 will be eligible for complete redemption, while those with debts over Rs 50,000 (up to Rs 1.5 lakh) will have 20% of their loan paid immediately, with the rest being adjusted on an annual basis over the next four years. As announced, the government had paid the entire amount to farmers who availed crop loan of below Rs 50,000 in 2015.
Similarly, the government also deposited two instalments of money along with 10% interest in the accounts of farmers in 2015 and 2016 and is now gearing up to deposit the third instalment by the end of August.
Planning Board vice-chairman C Kutumba Rao said that details of beneficiaries had already been submitted and the finance department is under the process of arranging the required funds for the third instalment of debt redemption scheme.
Stating that Rs 3,600 crore was required for payment of the third instalment along with interest, he said that as the budgetary allocation has already been made for the purpose, there is no problem of funds.