Chennai, Feb 26 (IANS): It is loan waiver season in Tamil Nadu ahead of the assembly polls.

Tamil Nadu Chief Minister K. Palaniswami on Friday announced in the state assembly the waiving of loans taken by pledging ornaments by the poor and farm labourers and women self help groups from cooperative societies and cooperative banks.

Palaniswami said poor people and farm labourers are finding it difficult to pay back these loans taken to tide over their financial difficulties during the Covid-19 pandemic period.

He said in order to help them out the government has decided to write off loans taken by pledging up to six sovereigns by poor and farm labourers from cooperative societies.

Similarly, in order to help the women self help groups who are finding it difficult to pay back their loans taken from cooperative banks and cooperative societies, the government has decided to waive their loans, Palaniswami said.

Palaniswami pointed out that the government had earlier waived farm loans to the tune of Rs 12,110 crore taken by about 16.43 lakh farmers.

Earlier in the day Palaniswami inaugurating the Rs 565 crore Mettur surplus water scheme in Salem said 24-hour three-phase free power will be supplied to agricultural pumpsets from April 1, 2021.