At a time when Chandrababu Naidu is facing flak for his flip-flop on crop loan waiver here comes the big relief for him.Apex bank of the country, Reserve Bank of India (RBI) has agreed in principle for the loan rescheduling proposal of Andhra Pradesh
According to the rescheduling, the loans of the farmers will be rescheduled to 3 years.Government has to repay these loans in small amounts every year.However a higher interest rate will be collected after rescheduling.
State Finance minister Yanamala, agriculture minister P Pulla Rao and CBN media advisor Parakala Prabhakar confirmed the development and said that an official letter from RBI is awaited in next two days.AP government is now planning to request RBI at least for 5 years since the state is facing severe financial crisis.
The government will also ask RBI regarding the reschedule of DWACRA loans
It’s worth to mention here that AP Chief Minister N.Chandrababu Naidu sent a letter to the RBI explaining the context in which the state government announced the waiver of farm loans and requested its help in implementing the scheme.Naidu has personally spoken to RBI Governor Raghuram Rajan several times and even visited Delhi many times to convey his concerns.
Loan Waiver is one of the prominent poll promises of Telugu Desam Party during the last elections.
After discussing various options on waiver of farm loans, the state government came to a conclusion that in the present situation, rescheduling farm loans is the best option.
The bankers earlier expressed that it is highly impossible to reschedule the loans without RBI permission and now the decision of RBI comes as sigh of relief to AP Government.
The Kotayya committee formed by Babu on loan waiver scheme will submit its reports in two days after RBI finalizes the guidelines for rescheduling.Based on that Chandra Babu Naidu will decide the amounts to be reimbursed .TDP sources say the entire process will be complete by the end of this month.
