AP Govt to deposit 20% of farm loans

This will cover farm loans up to `50,000

• Cabinet nod for Corporations for farmers, DWCRA members
• Farmers Corpn to be inaugurated on Oct 22 as a Diwali gift
• The Corpn to make agriculture profitable
• 5.59 % DA hike for state govt staff cleared
• AP govt to recommend Bharat Ratna for NTR, PV memorial at New Delhi

Hyderabad: Andhra Pradesh cabinet has finally resolved to deposit 20 per cent of the total outstanding loans of the farmers to the banks through the newly formed Farmers Empowerment Corporation, as a first step towards the loan repayment, a promise made to the farmers at the time of the elections.

This will benefit the small and marginal farmers, who had availed loans up to Rs 50,000. The government has promised to clear the loan of Rs 1.5 lakh each of the total 43 lakh farmers in the State. The bankers were also asked to complete the enumeration so as to weed out fictitious loans.

Giving details of the scheme, Chief Minister N Chandrababu Naidu told reporters on Wednesday that the Farmers Empowerment Corporation, a multi functional body to make agriculture a profitable business, would be inaugurated on October 22, as a Diwali gift to the farmers. He said the first installment of 20 per cent would be paid to the banks and the same amount would be paid every year to make the farmers debt free. The banks were also asked to reschedule the loans after receiving the first installment.

Since the State was left in a financial mess after the division and no help coming from the banks and the central government, it was decided to form the corporation after consulting experts in India and abroad. This will be a non-profitable organisation formed under the rules of Company Act 2013, the Chief Minister said.

“The corporation will be linked to agriculture mission and all other corporations related to agriculture. The new body will not confine to debt relief but make the agriculture a profitable venture for the farmers,’’ the Chief Minister said. On sourcing funds for the Corporation, the Chief Minister said revenues from red sanders auction and 75 per cent of the sand mining would be pumped into the corporation. A cabinet sub-committee would also be formed to consult government agencies for sourcing graft money. A similar corporation would also be formed for members of DWCRA Empowerment Corporation. Rs 10,000 to each of the 76 lakh members would be deposited into the corporation. The state government would have to fund Rs 7,600 crore towards this, he added. Regarding sand mining revenues, he said 25 per cent would be paid to the members and 75 per cent to the corporation.

Among the other decisions, the Chief Minister announced 5.99 per cent DA to all the government employees. The Cabinet also expressed its concern over the Telangana government decision to remove the statues of prominent personalities on the Tank Bund road. The cabinet felt it was extreme regionalism.

The members also unanimously resolved to recommend former chief minister and founder of Telugu Desam Party NT Rama Rao for the award of Bharat Ratna and a memorial for former prime minister PV Narasimha Rao in
New Delhi.