Daijiworld Media Network - Mumbai

Mumbai, Jun 2: The Maharashtra cabinet on Tuesday approved a farm loan waiver scheme covering agricultural loans of up to Rs 2 lakh, a move expected to benefit around 56 lakh farmers across the state.

According to sources, the scheme will cover more than 65 lakh loan accounts and is estimated to cost the state exchequer Rs 36,585 crore.

Chief Minister Devendra Fadnavis has directed the administration to ensure that the loan waiver amount is credited to beneficiaries by June 20.

Fadnavis, who also holds the finance portfolio, had announced the farm loan waiver while presenting the state budget earlier this year.

In addition to the waiver, the cabinet decided to provide an incentive of Rs 50,000 to farmers who have regularly repaid their crop loans.

The government said the measures are aimed at easing the financial burden on farmers and encouraging timely loan repayment. Further details regarding the implementation of the scheme are expected to be announced soon.