RBI for repayment within three years

• T govt agrees; AP FM convenes meeting of officials
• T waives loans up to Rs1 lakh; in AP it’s Rs 1.5 lakh
• Kotaiah panel to submit report to AP govt on Sat

Hyderabad: The Reserve Bank of India is willing to reschedule agriculture loans of farmers in Andhra Pradesh and Telangana provided the two governments agree to repayment within three years.

According to official sources, the RBI on Wednesday sent a letter to both the governments asking them if they can repay the loans in three years time. It has also asked them to send a report on the modalities of rescheduling of the loans and list of beneficiaries.

Soon after receiving the letter, finance minister of Andhra Pradesh Yanamala Ramakrishnudu convened a meeting of officials of finance department and asked them to prepare a list of the beneficiaries. It is understood that the government might wave off loans to the extent of Rs 1.5 lakh per farmer.

The government has also asked various consultancies to study crop insurance models in the world so that along with the waiving of the loans it can also introduce an insurance policy to farmers, wherein they would get back 100 per cent compensation for crop loss either due to drought, cyclone or any other untoward incident. Meanwhile, AP Chief Minister N Chandrababu Naidu has announced that there was no question of going back on implementation of loan waiver. It is said that the Kotaiah Committee constituted to work out the modalities of loan waiver scheme will submit its report by Saturday. On the other hand, the T government discussed the issue of loan waiver at its cabinet meeting and learnt to have decided to agree for rescheduling of loans for a period of three years. It has asked the officials to prepare a detailed list of the beneficiaries. The T government had promised to waive off loans up to Rs 1 lakh. This would put a burden of Rs 18,000 crore on the exchequer.