MUMBAI: Maharashtra Chief Minister Devendra Fadnavis on Friday announced the much awaited farm loan waiver scheme titled Punyashlok Ahilyabai Holkar Shetkari Karjmafi Yojana, which is expected to cost the state exchequer around ₹35,000 crore and benefit nearly 50 lakh farmers across the state.
Elaborating on the scheme, Fadnavis said that during the 2024 state Assembly election, the Mahayuti alliance had promised a farm loan waiver of up to ₹2 lakh and had decided to fulfil the promise on the day of the state’s annual Budget.
He said the government is yet to receive consolidated data from banks, but based on available information and previous loan waiver schemes, around 50 lakh farmers are likely to benefit.
"The cut off date for this farm loan waiver scheme is September 30, 2025. There are around 28 lakh to 30 lakh farmers who are defaulters, and they are likely to get the benefit of the state government's farm loan waiver scheme up to ₹2 lakh," Fadnavis said.
"Besides, there are around 20 lakh farmers in the state who are not defaulters and are known as regular payers of farm loans. They are eligible for ₹50,000 as an incentive or award. The 30 lakh defaulters and 20 lakh non defaulters of crop loan farmers will cost the state exchequer around ₹20,000 crore and ₹15,000 crore respectively, and together the amount goes up to ₹35,000 crore. However, the state finances are sound, so we are ready to bear this cost for the larger interest of the farmers," he added.
He further said the aim of the scheme is to free farmers from debt so that they can become eligible for fresh crop loans in the next cycle. "The farm loan waiver is not for the banks' benefit, but it is purely for the farmers. The maximum number of farmers should take advantage of this scheme. We have the farmers' Stack ID card, and that will be connected to Aadhaar, and then the authentication of the farmer's identity will be done."
"Then the benefit of the farm loan waiver scheme will be extended to farmers. We will ensure that the farmers get the benefit early and before the start of the Kharif season," the Chief Minister said, adding that the scheme will not be restricted and the government wants as many farmers as possible to benefit.
Reacting to the announcement, Congress leader Vijay Wadettiwar said the Opposition would welcome the decision if it genuinely benefits farmers.
He said, "If we rightly remember the farm loan waiver scheme that was carried out in the first term of Devendra Fadnavis as Chief Minister of Maharashtra from 2014 to 2019, we saw how his farm loan waiver scheme grossly failed. The reason was that Fadnavis put several terms and conditions that disqualified more farmers than made them eligible for the scheme. Besides, this farm loan waiver was also known for issuing a historic number of GRs for one scheme."
"One after another GR was issued, which created major confusion among the administration and farmers, and hardly any significant number of farmers got the benefit of that scheme. We hope Mr Fadnavis has learnt from his past failure and executes the scheme properly with a broader and honest approach to help the state's farmers," he added.