Waive all loans of farmers: Jaya

Chennai, May 27 (UNI) Former Chief Minister and AIADMK general secretary J Jayalalithaa today urged the Tamil Nadu government to waive loans availed by farmers from nationalised, commercial and land development banks, in addition to the cooperative loans.

Participating in the debate on the motion of thanks to the Governor's address in the state Assembly, she said a majority of those who had availed loans from nationalised and commercial banks were small and marginal farmers.

Lakhs of ryots in the Cauvery delta districts, who had taken loan from the above mentioned banks to the tune of Rs 7,000 crore, were also affected by droughts and hence their loans should be waived, she said.

Stating it was not justifiable to waive the loans of a section of farmers alone, Ms Jayalalithaa said the government should also take steps to refund amount to those, who had already repaid their loan to cooperative banks.

She also raised question as to whether the government had sought the approval of NABARD and the Reserve Bank before issuing the order to waive the cooperative loans.

When Electricity Minister Arcot N Veerasamy said Union Finance Minister P Chidambaram had already communicated to the Reserve Bank and NABARD in this connection and the government's announcement on waiver would be definitely implemented, Ms Jayalalithaa pointed out to Mr Chidambaram's statement in parliament that the Centre would not provide any funds to the state in this regard.

Intervening, Mr Peter Alphonse (Congress) said the Union Finance Minister had planned an elaborate programme to revamp the cooperative banks all over the country. The Centre would support the Tamil Nadu Government in implementing its promises, he said.

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