Cabinet okays Rs 10,000cr fund for farm loans

The Union Cabinet today approved a Farmers' Debt Relief Fund with an initial corpus of Rs 10,000 crore to finance a scheme for debt waiver and debt relief to farmers, which was announced in the budget for 2008-09.

The Debt Relief Fund will subsequently be enhanced by Rs 15,000 crore in 2008-09, Rs 15,000 crore in 2009-10, Rs 12,000 crore in 2010-11 and Rs 8,314 crore in 2011-12.

The debt waiver scheme, widely seen as a populist measure ahead of general elections in 2009, will be implemented by June 30, 2008.