Assam Approves Rs 600-Crore Farm Loan Waiver

The Assam government approved Rs 600 crore-worth farm loan waiver for the benefit of nearly eight lakh farmers of the state, its spokesman said today.

The government, according to the move, will write off 25 percent loan of farmers up to a maximum of Rs 25,000 of all farm debt, Assam Government spokesperson and Parliamentary Affairs Minister Chandra Mohan Patowary said.

The waiver will be for all loans taken through the Kisan Credit Card and from public-sector undertakings banks, he said.

The government also sanctioned an interest relief scheme which will enable around 19 lakh farmers to avail loans at zero interest from the next financial year, he said. The decisions were taken at a cabinet meeting was held on Monday night.

Due to these schemes ,there will be an additional burden of Rs 600 crore on the state exchequer this fiscal. "For the next fiscal, we will have to do budgetary provision for the schemes," Patowary said.

The cabinet also approved subsidy up to Rs 10,000 to incentivise farmers if they take loan from KCC.

"There will be interest relief scheme of up to four percent for farmers. There will be interest relief from the state government so that farmers get crop loan at zero interest from next financial year," Patowary said, adding that around 19 lakh farmers are expected to benefit.

The cabinet decided to enhance the state Freedom Fighters' pension from Rs 20,000 to Rs 21,000.

The meeting also approved the formation of a Micro and Small Enterprises' Facilitation Council to help the growth of micro, small and medium enterprises sector in the state, the minister said.

The government also sanctioned Rs 32.72 crore loan from National Cooperative Development Corporation for revival of a jute mill at Nagaon, he said.