Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Aug 25: The state government has issued orders waiving non-performing assets of farmers, overdue, and re-phased loans of farmers in nationalized banks up to a sum of two lac rupees. It had earlier waived loans raised by farmers in cooperative banks up to one lac rupees.

This new gesture of the state is expected to cost Rs 32,000 crore to the exchequer additionally.

The state cabinet has decided to bring out an ordinance to provide relief from burden of debt to small farmers, agricultural labourers and economically weaker sections. Karnataka chief minister, H D Kumaraswamy, said that the cabinet has decided to promulgate Karnataka Debt Relief Ordinance 2018 to provide relief to people from private money lenders. In this case, in line with the decision then taken by the government held by D Devaraj Urs in the past, the above classes will be relieved of all the loans and liabilities availed from private money lenders and get back movable assets if any pledged to them. The government also need not pay anything to these private moneylenders, it is gathered.

For taking ahead the loan waiver scheme which will be carried out over several years, a nodal committee having two IAS officers would be formed by the government. The chief minister said that this committee will be in contact with banks and ensure that the benefits of loan waiver scheme directly reach the farmers.

Under the debt relief scheme, landless agricultural labourers, and weaker sections with an income up to Rs 1.20 lac per year will be rid of loans raised from private money lenders. The ordinance will have provision for imprisonment for private moneylenders if they try to forcibly recover the loans.