Making a suo motu statement in the House, Narayanasamy said although the Lt Governor Kiran Bedi had declined to approve the government's decision to waive the loans, the file was forwarded to the Union Home Ministry.
The Home ministry had given its nod in its order issued recently stating that the Puducherry government could on its own waive the loans but the Centre would not provide any financial assistance.
"We will always be friend of farmers and dismantle to pieces all the hurdles obstructing welfare of the farmers," the chief minister said.
He said the Lt Governor had declined to concede the government's decision when her approval was sought.