‘AP, Telangana farm loan wavier calls don’t hold merit’
6 Aug 2014 6:29 AM IST
On the massive non-payment problems in Andhra Pradesh and Telangana, Rajan said even if some package gets announced, it will make sure that the non-payers do not benefit. RBI has shown reluctance to a debt waiver or restructuring of the loans as it sees no reason in undertaking such a task.
‘We are in discussion with these state governments to see where exactly is the distress so that we can take a more reasoned and focused view. It doesn’t appear from the production data that the cyclone had widespread damage,’ he concluded.
The AP government had last month announced that it would waive farm loans of up to Rs 1.5 lakh per family, a move that is likely to impose a financial burden of Rs 35,000 crore on the cash-starved state exchequer.
In addition, the government also decided to write-off loans amounting to Rs 7,600 crore given to women self-help groups (SHG). Another Rs 300 crore loans given to weavers, Scheduled Castes and other small artisans, too, would be waived, AP Chief Minister Chandrababu Naidu had said.
On the massive non-payment problems in Andhra Pradesh and Telangana, Rajan said even if some package gets announced, it will make sure that the non-payers do not benefit.
RBI has shown reluctance to a debt waiver or restructuring of the loans as it sees no reason in undertaking such a task. ‘We are in discussion with these state governments to see where exactly is the distress so that we can take a more reasoned and focused view. It doesn’t appear from the production data that the cyclone had widespread damage,’ he concluded.
The AP government had last month announced that it would waive farm loans of up to Rs 1.5 lakh per family, a move that is likely to impose a financial burden of Rs 35,000 crore on the cash-starved state exchequer.
‘We are in discussion with these state governments to see where exactly is the distress so that we can take a more reasoned and focused view. It doesn’t appear from the production data that the cyclone had widespread damage,’ he concluded.
The AP government had last month announced that it would waive farm loans of up to Rs 1.5 lakh per family, a move that is likely to impose a financial burden of Rs 35,000 crore on the cash-starved state exchequer.
In addition, the government also decided to write-off loans amounting to Rs 7,600 crore given to women self-help groups (SHG). Another Rs 300 crore loans given to weavers, Scheduled Castes and other small artisans, too, would be waived, AP Chief Minister Chandrababu Naidu had said.
On the massive non-payment problems in Andhra Pradesh and Telangana, Rajan said even if some package gets announced, it will make sure that the non-payers do not benefit.
RBI has shown reluctance to a debt waiver or restructuring of the loans as it sees no reason in undertaking such a task. ‘We are in discussion with these state governments to see where exactly is the distress so that we can take a more reasoned and focused view. It doesn’t appear from the production data that the cyclone had widespread damage,’ he concluded.
The AP government had last month announced that it would waive farm loans of up to Rs 1.5 lakh per family, a move that is likely to impose a financial burden of Rs 35,000 crore on the cash-starved state exchequer.
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