The Hindu : Tamil Nadu News : 15 lakh farmers to benefit from loan waiver scheme

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Sunday, Jun 29, 2008
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Tamil Nadu

Tamil Nadu

15 lakh farmers to benefit from loan waiver scheme

T. Ramakrishnan

80 per cent of the beneficiaries marginal and small farmers

CHENNAI: An estimated 15 lakh farmers in the State have been covered under the Centre’s scheme of agricultural debt waiver and relief, accounting for about Rs. 5,000 crore.

Around 80 per cent of the beneficiaries are marginal and small farmers, who own up to two hectares. For this category, a complete waiver has been made with respect to loans that were overdue as on December 31, 2007 and which remained unpaid until February 29, 2008. In respect of other farmers, a 25 per cent rebate has been, as one-time settlement, effected for loans [overdue and unpaid] against payment of the remaining 75 per cent.

[At the all-India level, about four crore farmers are covered under the scheme and the size of waiver and relief comes to about Rs.71,680 crore].

The scheme is applicable to the loans taken between April 1, 1997 and March 31, 2007. In Tamil Nadu, 60 scheduled commercial banks, regional rural banks and cooperative credit institutions, including 12 private banks, are participating in the scheme. At present, the rolling out of lists of beneficiaries is on. It will be completed by Monday, says G. Narayanan, executive director of Indian Overseas Bank and convenor of the State-Level Bankers’ Committee.

The lists contain details regarding names of the beneficiaries, date of borrowing, the amount taken and the amount eligible for waiver or relief. In every bank branch, there is a helpdesk to address concerns of the beneficiaries. Grievance redress officers have also been nominated.

Though the issue of waiver certificates has begun, it will pick up momentum from Tuesday, according to the SLBC convenor. There is no need for the farmers to produce loan documents at the time of receiving waiver/rebate certificates. Once the certificates are issued, the farmers will become eligible for fresh crop loans. To get new loans, there is no compulsion for the farmers to go back to the bank from where they took their earlier loans, Mr. Narayanan explains.

On Tamil Nadu’s plea for absorption of its waiver scheme of cooperative crop loans under the Central scheme, Mr. Narayanan replies there is no communication from the Centre in this regard. [When the Dravida Munnetra Kazhagam government took over in May 2006, it ordered the waiver of the cooperative loans to the tune of Rs.7,000 crore]. However, a senior official of the State government says the matter has been taken up at the highest level. Another official says that under the present conditions, the cooperative sector in the State will receive the benefit of about Rs.170 crore.

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