Telangana Chief Minister A Revanth Reddy announced on Friday that the state government will waive farm loans up to Rs 2 lakh by August 15. This decision was made during a Cabinet meeting where the guidelines for implementing the scheme were also approved.
Farmers who took bank loans between December 12, 2018 and December 9, 2023, will be eligible for the loan waiver. The government estimates that Rs 31,000 crore will be needed to implement the scheme in one go. Priority will be given to poor farmers burdened by institutional loans, while wealthy farmers, income tax payers, and high-level government employees will not be eligible.
The Congress government aims to fulfill the promise of loan waiver made by Rahul Gandhi during his campaign. The previous government waived Rs 28,000 crore in loans over 10 years, while the current government plans to waive over Rs 31,000 crore in just eight months. Finance Minister Mallu Bhatti Vikramarka is responsible for sourcing funds for the scheme.
A Cabinet Sub Committee, led by Bhatti, has been formed to implement the Rythu Bharosa scheme (formerly Rythu Bandhu). This committee will gather input from farmers associations and political parties and present a report by July 15 for discussion in the Assembly. Ministers D Sridhar Babu and P Srinivas Reddy have been appointed to provide regular updates to the media to prevent misinformation.
