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Andhra Pradesh chief minister N Chandrababu Naidu today said his government would repay the farmers’ loans in five installments to the banks over a five-year period starting this month. He also announced setting up of a ‘Farmers’ Empowerment Corporation’, a not-for-profit agency, to handle the financing of these loan dues, among other issues related to the farm sector.
Briefing the media on the decisions taken by the state Cabinet earlier in the day, Naidu said the state government would facilitate the corporation to mobilise funds required to meet the loan repayment obligation through various means, including levying of special cess and loans from banks and financial institutions. The corporation will also receive the proceeds of the sale of the red sanders, due later this month, he said.
The chief minister appealed to the banks to renew loans of the borrowers upon receiving 20 per cent of the loan amount in each eligible account of the borrower. “We have arrived at this mechanism after hours and days of exercise even as the state is going through a difficult financial situation. The move is also intended to help the banks as they would face the problem of higher NPAs without our intervention,” he said. The corporation, which will be launched on October 22, will be integrated with various government agencies working in the agriculture sector, according to him.
Simultaneously, the government will issue certificates to the farmers with a promise to pay the remaining 80 per cent of the loan amount any time after January 2015. “They would be given 10 per cent interest on the unpaid amount if they are ready to wait . Or, the corporation will clear their dues if it could mobilise sufficient resources early on,” Naidu said.
Yesterday, the banks have agreed to the government’s offer regarding payment of 20 per cent of the loan liability to extend the fresh loan facility to the borrowers in this season.
Cabinet seeks Bharat Ratna for NTR
The Andhra Pradesh Cabinet on Wednesday adopted a resolution requesting the Centre to give Bharat Ratna award to former chief minister and Telugu Desam Party founder late N T Rama Rao, besides seeking a memorial dedicated to former Prime Minister PV Narasimha Rao in New Delhi.
The Cabinet also adopted a separate resolution complimenting Prime Minister Narendra Modi for his successful visit to the US.
