State government presents blueprint for farm loan waiver

Bengaluru: An official statement said that the Karnataka government has come up with a blueprint to waive farmer’s loan from state-run and co-operative banks in Karnataka, an official proclamation said. 

“The government has arranged a blueprint to waive off loans upto Rs 48,000 crore that includes loans from co-operative banks, subsidy and crop loans granted by the state-run banks,” said a statement from the Chief Minister’s Office. 

The blueprint includes the Rs 34,000 crore loans to be waived off as declared by Chief Minister HD Kumaraswamy while presenting the state Budget on July 5. 

Rs 48,000 crore loans is to be waived off, including Rs 37,159 crore crop loans granted to the farmers by state-owned banks and about Rs 9,500 crore of current loans, the statement included. 

The banks are to prepare the details of the farmer’s loan from across the state that are qualified to be waived, and the process of waiver will initiate after the state’s audit. 

According to the election manifesto of the Janata Dal-Secular JD(S) to waive farmer loans if voted to power, Kumaraswamy, had announced in his budget speech to waive upto Rs 2 lakh crop loans for every farmer family. 

The budget had additionally proposed to allot Rs 6,500 crore to empower farmer avail fresh loans after they submit a clearance certificate from the concerned that their loans have been waived .