Bhopal, Jan 6 (IANS): The Madhya Pradesh cabinet on Saturday approved a farm loan waiver scheme under which dues of farmers worth Rs 2 lakh would be waived in the state. The cabinet also extended the cut-off date for farm loan waiver from March 31 to December 12, 2018.

The announcement was made aftert the cabinet meeting by Public Relation Minister P.C. Sharma and Higher Education Minister Jeetu Patwari.

"The Cabinet today approved the farm loan waiver scheme for farmers," Patwari said addressing a press conference.

He said: "The cabinet also extended the cut-off date up to December 12, 2018 from previously announced March 31, 2018."

After coming to power, Madhya Pradesh Chief Minister Kamal Nath had announced that only those loans which are outstanding as on March 31, 2018, would be eligible for a loan waiver, creating confusion among the farmers.

Prime MInister Narendra Modi has accused the Congress of cheating farmers in the country in the name of loan waivers.

"The Congress earlier cheated the country in the name of 'garibi hatao' for years and is now cheating farmers in the name of loan waivers," Modi told a public rally of the BJP-Shiromani Akali Dal (SAD) alliance in Gurdaspur town on January 3.