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12 days after announcing loan waiver, Rajasthan to pick beneficiaries

Farm Loan Waiver: CM sets up committee to decide on eligibility criteria

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Rajasthan CM Ashok Gehlot
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Upon directions from Chief Minister Ashok Gehlot, the Rajasthan government has set up a committee to decide on the eligibility criteria of farmers who would benefit from the loan waiver scheme the government announced on December 19. The committee, to be headed by urban development and housing minister Shanti Dhariwal, also includes Parsadi Lal Meena, Agriculture Minister Lalchand Kataria, Cooperatives Minister Udayal Anjana, Social Justice Minister Master Bhanwarlal, minister of state Bhanwar Singh Bhati and minister of state for forests Sukhram.

The government is also trying to figure out how to arrange the necessary funds required to finance the loan waiver scheme. "The committee would give suggestions regarding availability of resources for carrying out the farm loan waiver," a government official said.

Gehlot's loan waiver move would cost the treasury Rs 19,000 crore. In addition, he also claimed liability of the previous Vasundhara Raje government's waiver schemes, amounting to Rs 6,000 crore.

A bureaucratic team from Rajasthan is also expected to visit different states. "A proposal to visit states where farm loan waivers have been successfully carried out is on the cards," an official said.

The Raje government had declared a farm loan waiver in its 2018 Budget. A committee was formed comprising ministers and members of political parties in October 2017. The committee studied schemes from Kerala and other states, and after its report was received, the chief minister made an announcement to this effect in February 2018.

The Gehlot government, by contrast, has made the announcement but still not even decided the beneficiaries of the scheme. It comes across as an attempt to retrofit the policy while beneficiaries wait for the waiver to reflect in their bank accounts. "This is a delay tactic. The government has not waived off a single amount till now. The announcement was of a total farm loan waiver, but now they are talking of criteria and defaulters, and a committee has been formed," said Amraram, a farmer leader and former MLA from the CPM, who was a member of the previous committee formed by the Raje government.

A Costly Move

  • Rajasthan government’s move of announcing loan waivers would cost it Rs 19,000 crore.
  • The previous Vasundhara Raje government’s loan waiver, amounting to Rs 6,000 crore, would also be added to this.
  • The government is currently trying to figure out how to arrange the necessary funds to finance the scheme.
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