Uttar Pradesh disburses Rs 7371 crore in first phase of farm loan waiver

Uttar Pradesh chief minister Adityanath. Credit PTI

Uttar Pradesh chief minister Adityanath. Credit PTI

Amid the shocking reports of Uttar Pradesh farmers receiving peanuts as loan waivers, the state government has said that they are not to be blamed because the "distribution amount is precisely what the farmers owed to the bank".

The government said that the loans of 11.93 lakh small and marginal farmers will be resolved in this phase.

The release said that loans of Re 1 to Rs 100 of 4,814 eligible farmers have been redeemed while 6,895 farmers have been redeemed of money from Rs 100 to Rs 500.

Another farmer, Babulal, also complained of receiving a loan waiver certificate of Rs 28,000 while he had a loan of Rs 50,000.

The government in an official statement said that the low amounts are owing to the unpaid amount of interest dues that have been waived for farmers who have repaid most of their crop loans. The state government has announced a Rs 32,000 crore scheme to waive farm loans of up to Rs 1 lakh by lending institution as on or before March 31, 2016.

At a programme on Monday, some 7,000 farmers were handed over certificates notifying the amount of their loans waived.

Following UP's loan waiver announcement, Punjab, Maharashtra and Karnataka followed suit, where a total of Rs 85,000 crore is to be waived for 14.9 million farmers in these four states.

This was repeated by Prime Minister Narendra Modi in his election rallies.

Prime Minister Narendra Modi during electioneering had promised that the first decision of the UP government under BJP rule would be to waive loans of small and marginal farmers.

Latest News