Farm loan waiver: K'taka Govt against extending deadline

Bangalore, Mar 30 (UNI) The Karnataka Government today ruled out extending tomorrow's deadline for the repayment of principal of Rs 25,000 without interest to be eligible for the farm loan waiver for the remaining Rs 25,000.

Stating that there would be no change in the scheme, Deputy Chief Minister B S Yediyurappa, who also holds the Finance portfolio, told newspersons on the Assembly lobby that the decision was taken as cooperative societies have to survive.

When newspersons sought his reaction to the Opposition's demand to extend the deadline from the month-end to June one as 19 districts were under the grip of drought, he said the Government had decided against extending the deadline. Otherwise, it would have been announced on the floor of the Assembly, he added.

Mr Yediyurappa, in his budget proposals presented on March 16, had announced waiver of crop loans to farmers who had availed Rs 25,000 loan from cooperative institutions between April one, 2006, and December 31, 2006. Later, making a suo motu statement in the Assembly on March 22, he had announced an increase in the upper limit of crop loans availed by farmers from Rs 25,000 to Rs 50,000 and clarified that farmers who repay the principal of Rs 25,000 without interest by March 31 would be eligible for waiver of the remaining Rs 25,000 principal and interest.

The waiver would benefit over 13.63 lakh farmers, including nearly six lakh farmers who had availed a loan of Rs 25,000. The Government would incur a financial burden of Rs 1,950 crore in view of the decision, which would be met by curtailing unnecessary expenditure, he had said.

UNI