AP government, which is determined to implement its crop loans waiver promise has decided to clear the loans in phases due to financial limitations, beginning from end of September or in mid-October. This decision was taken in the funds mobilizing committee meeting chaired by Chief Minister Chandrababu Naidu at his camp office in Lake House guest house on yesterday evening. Committee Chairman Sujana Chowdary and others have participated in this meeting. They have identified some resources for generating funds for this crop loans waiver issue and discussed measures to be taken to tap the funds from them.

It was decided in the meeting that, government will clear crop loans between Rs.7000-10,000 crores during the first phase beginning with the poor farmers. State government has allocated Rs.5000 crores in its budget for this purpose and is expecting another Rs.8,000-10,000 crores from the auction of Red Sandal lying in its possession.

If government could start implementing this promise that brings it into power, it may prove a blow to Congress and YSR Congres parties, which are arguing the government is not honest with its promise on this issue and is trying to escape from it.