Hyderabad: Andhra Pradesh cabinet has finally decided to deposit 20 percent of total outstanding loans of farmers to the banks through the newly formed Farmers Empowerment Corporation, as a first step to return the loan, a promise to the farmers at the time of elections.
This will benefit small and marginal farmers who had taken loans of up to Rs 50,000. The government has pledged to clean up the Rs 1.5 lakh loan each of the total of 43 lakh farmers in the State. Bankers were also asked to complete the list in order to eliminate the fictitious loans.
Giving details of the scheme, Chief Minister N Chandrababu Naidu told reporters Wednesday that the Farmers Empowerment Corporation, a multi functional body to make agriculture a profitable business, opened on 22 October as a Diwali gift farmers. He said the first installment of 20 percent would be paid to the banks and pay the same amount each year for the farmers debt free. Banks were also asked to reschedule after receiving the first installment loans.
Since the state was left in a financial mess after the split and no help from banks and the central government, it was decided to form the corporation after experts in India and abroad to consult. This will be a non-profit organization formed under the rules of the Companies Act 2013, the Prime Minister said.
"The corporation's mission will be linked to agriculture and all other agriculture-related corporations.'s New body is not limited to debt reduction, but agriculture a profitable activity for farmers", "the Chief Minister said. providing funds of the Corporation, the Prime Minister said that the red sanders auction revenues and 75 percent of the extraction of sand is pumped into the corporation. would also form a subcommittee of cabinet government agencies to consult provisioning graft money.
It would also be a similar corporation formed for members of DWCRA Empowerment Corporation. Rs 10,000 to each of the 76 lakh members would be deposited in the corporation. The state government will have to fund Rs 7,600 crore in this direction, he added. As for sand mining revenues, 25 percent said members and 75 percent of the corporation would be paid.
Among other decisions, the Chief Minister announced 5.99 per cent DA to all government employees. The Cabinet has also expressed concern about the government's decision to remove the statues of Telangana personalities prominent in the Tank Bund road. The cabinet felt it was the extreme regionalism.
Members also resolved unanimously to recommend the former prime minister and founder of the Telugu Desam Party NT Rama Rao for giving Bharat Ratna and a memorial for former Prime Minister PV Narasimha Rao in New Delhi.
