AP to appeal RBI for extension of crop loans reschedule

 Responding to RBI’s letter over rescheduling the crop loans, AP government decides to write a letter to RBI requesting to extend the reschedule period from 3 years to 7 years so as the government will be able to repay the loans to bankers. The government also is going to appeal the RBI to consider rescheduling the gold loans taken for agricultural purposes during last Rabi session.

RBI identified that total 572 mandals out of 660 were either hit by draught or Phailin cyclone. The farmers in these affected areas have taken Rs. 20,500 crore including Rs 10,000 crores of gold loans. RBI formally agrees to reschedule only crop loans taken during kharif season of 2013-14, but not the loans outside this period and also to the gold loans. But, state government doesn’t expect this kind of proposal from RBI. Hence, it is writing a letter to RBI for a reschedule of entire crop loans and gold loans as well, otherwise it urgently needs Rs.11,000 crore to clear the gold loans to let the farmers get fresh loans. AP

Government is planning fixing the sealing limit for the loan waiver at Rs.1.5 lakhs for crop loans and Rs.50000 for gold loans. This will reduce the burden on the state government around Rs. 12,000 crores, estimates Finance Ministry.

Finance minister Yanamala Ramakrishnudu said the government is committed on its loan waiver promise and leaving no stone left unturned to uphold its promise. He expressed quite confident to repay the crop loans and also can balance the state budget. Hence, it appears with the developments that the crop loans waiver issue may take a few more days’ time to resolve.