MUMBAI: The Maharashtra government on Saturday announced it would spend ₹34,022 crore to write off farm loans, a decision that would help 89 lakh farmers in debt across the state.
The loan waiver, which chief minister Devendra Fadnavis said was the “highest by any state in India’s history”, will cover 65% of all farmers in Maharashtra. Of this, loans of 40 lakh farmers will be completely written off.
The government announced the waiver a month ahead of the July 25 deadline set by farmers’ outfits. The loan waiver decision was made at an unscheduled cabinet meeting called by Fadnavis on Saturday.
The write-off came with conditions — a cap of ₹1.5 lakh per farmer, and only farmers who took loans before June 30, 2016, are eligible.
The government said despite these conditions, 40 lakh farmers will not have to make any payments at all while 6 lakh can avail of a scheme that lets them make a one-time settlement of up to ₹1.5 lakh.
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source: Hindustan Times