Govt guidelines for loan waiver package
In the backdrop of Union Government giving its nod to implement Coffee loan waiver package of Rs 241.33 crore, the government has issued guidelines for the same.
As per the guidelines, small growers who own less than 25 acre coffee estate and have availed Rs 5 lakh special coffee term loan before 2002, then 50 per cent of the loan will be paid by the Union government, 25 per cent will be waived by the bank and 25 per cent will have to be borne by the growers. This amount must be paid within the stipulated period.
However, the guidelines do not say anything on the deadline for the payment of loan.
For the crop loan, the bank will waive off a maximum of Rs one lakh and Centre will pay 10 per cent of the loan.
The package is applicable to the loan pending as on June 30, 2009. The package is also applicable for those growers who have been imposed a fine by the bank with the case pending in court or Forum.
Loan waiver is not announced for the medium and large coffee growers. However, they have been given time to repay the loan. Coffee package is not applicable for the loan borrowed for the purchase of estate, car, construction of house. It is not applicablke even for the loan borrowed for rubber, coconut, paddy and ginger crops.
The Centre will release its share of money to the Coffee Board. There is no exact information as to how many small growers in Kodagu will benefit from the package. Coffee board has not announced district wise list. Based on the lists given by the bank, one can come to a conclusion as how many will benefit in Kodagu, said Coffee Board Deputy Director N Rangaswamy Reddy.
