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Punjab cabinet approves crop loan waiver

Last Updated 20 September 2017, 14:20 IST

The Punjab cabinet Wednesday gave its approval to notify the crop loan waiver scheme announced by chief minister Captain Amarinder Singh in the state assembly in June this year.

Besides taking over the entire eligible loan amount of the farmers covered by the debt waiver scheme, the government has also decided to take over the outstanding interest of farmers from April 1, 2017, till the date of notification, which will lead to an additional Rs 400 crore benefit to the farmers.

The entire amount would be defrayed to the banks in a phased manner, except for the cooperative credit institutions.  The proposed notification will pave the way for the state government to take up the issue of settlement of loan with respective banks as a one-time settlement.

The crop loan waiver scheme, based on the recommendations of an expert group headed by eminent economist T Haque, will directly benefit nearly 10.25 lakh farmers across the state.

Capt had in June announced waiver of the entire crop loans (up to Rs 2 lakhs) of all small and marginal farmers (up to 5 acres) and a relief of Rs 2 lac to the remaining marginal farmers irrespective of the amount of loan.

The debt waiver scheme would cover crop loan disbursed to farmers in the state by scheduled commercial banks, cooperative credit institutions (including urban cooperative banks and regional rural banks, collectively called as the 'lending institutions'.

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(Published 20 September 2017, 14:20 IST)

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