Maharashtra Farm Loan Waiver snippets

The debt waiver for farmers that the Maharashtra state government had announced will cover loans of up to Rs.1 lakh, provided they were taken prior to June 30, 2016. Conditions are the same as those announced in Uttar Pradesh for writing off farm loans.
The criteria for the waiver, which was announced by revenue minister Chandrakant Patil, drew criticism from farmer groups who accused the BJP-led regime of reneging on its original promise and threatened to revive their agitation.

Patil said under RBI guidelines a loan waiver can be provided only in case of a drought, and hence, the offer would be valid for loans taken between 2012 and June 30, 2016, when the state was reeling under a dry spell. State revenue minister Chandrakant Patil led a panel of cabinet ministers for a meeting with farmer groups to finalise the terms of an agri loan waiver.

While indicating that Rs.1 lakh would be outer limit for the amount that is written off, Patil clarified that extent of landholding would not be a criterion for eligibility of beneficiaries. However, he said other factors would count.

There are nearly 40 lakh farmers in the state, whose cumulative outstandings add up to Rs.30,000 crore till June 30, 2016.

Patil also said criterion set by government to provide a bank guarantee for a loan advance of Rs.10,000 to farmers ahead of the Kharif season will be revised after feedback from farmers representatives. In any case, farmers with four-wheelers will not qualify for it nor will members of panchayat samitis.

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