State govt announces waiver of NPA loans of about 1 L farmers
Team Udayavani, Jun 14, 2019, 8:34 PM IST
Bengaluru: The Karnataka government Friday decided to waive Non Performing Asset loans of about one lakh farmers, who owe about Rs 965 crore to commercial banks.
The decision comes two days after the government ordered release of money toward farm loan waiver in commercial banks in one-go as against four instalments announced in the budget last year.
The money will be deposited in the accounts of eligible farmers in one instalment, the government had said in its June 11 order.
“Today the finance department passed an order on NPA loans of about one lakh accounts of farmers, worth Rs 965 crore. We expect that by June end we will transfer the amount to the loan accounts of farmers,” chief secretary T M Vijay Bhaskar told reporters here.
On June 12, the government had ordered clearance of loans under regular, overdue and restructured, which farmers had taken from commercial banks, but not under NPA.
The loan waiver had comprised restructured loans of Rs 2,812 crore, overdue loans of Rs 3,057 crore and incentive for regular loans Rs 720 crore, which farmers had taken from the nationalised banks.
Baskar said that with regard to commercial banks, loans of 7.5 lakh accounts have been cleared by transferring Rs 5,297 crore.
“After the finance department’s order, NPA loans of about one lakh farmers have been waived. the total number of beneficiaries has now stands at 8.5 lakh,” Bhaskar said.
On the NPA loan, Bhaskar said the banks agreed to waive 25 per cent of the loans while the balance 75 per cent, which is approximately Rs 740 crore, would be borne by the government.
Finance Department officers said there are about 11.98 lakh loans pending in cooperative banks,which would be cleared in four instalments, as decided earlier by the government.
This comprises about one lakh people who have not furnished the requisite details, they said.
Under the crop loan waiver scheme, a maximum of Rs two lakh would be waived. The farmer will have to bear the loan amount above Rs two lakh, they said.
Chief Minister H D Kumaraswamy had in July last year announced waiver of farm loans to the tune of Rs 46,000 crore to benefit about 42 lakh farmers, to be executed in phases within four years.
However, certain restrictions and conditions brought down the number of beneficiaries to about 20 lakh farmers.
This scheme was part of the JD(S) manifesto, which the chief minister implemented after taking its ally Congress in the government on board.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
SIT issues notice to Revanna, Prajwal Revanna in sexual harassment case
SC dismisses L&T’s plea challenging tender of Sharavathi power project in Karnataka
Boy rescued from drowning at Malpe beach
Mangaluru: Train schedule to be disrupted due to track maintenance work
Kumaraswamy and Shivakumar spar over sex scandal involving Hassan MP
MUST WATCH
Latest Additions
Godrej family split: Adi, brother to keep listed firms; cousin Jamshyd to get unlisted companies & land bank
Lok Sabha Elections 2024: Political parties from 10 countries visiting India on BJP’s invite to experience polls
Hardik Pandya and MI penalised heavily after loss to LSG
Congress using fear, rumour and now deepfake for its propaganda: Anurag Thakur
5 Delhi schools receive bomb threats, searches underway