UP Government To Use Kisan Rahat Bonds To Finance Farm Loan Waiver, Says State Minister

If we include the NPAs (non performing assets) it amounts to Rs 36,500 crore. NPAs are around Rs 5,600 crore, and the loan waiver to the farmers who have taken on debt for for cultivation is about Rs 30,000 crore.

The total number of marginal and small farmers in UP is about 2.15 crore. So whoever has taken those loans for cultivation will be included.

We felt that generally the small farmer doesn't have the capacity to take more (large ticket) loans. So we took a call, because otherwise we would have had to go into an estimation. And you have to always put a figure. So we felt that Rs 1 lakh would be a safe bet and on a higher side. Yes, it is up to Rs 1 lakh.

We are going to raise it through Kisan Rahat Bonds. When we raise bonds, I am sure the banks' outstanding amount will be taken care (of) with that. We will then gradually ease the money out.

We have formed a committee of secretaries. They will be coming up with the blueprint (for the farm loan waiver scheme). And then they will take it forward. But, at the same time, we have to take it up during the state's Budget session.

Well, by the time the Budget session begins in early June. Dates have not been finalised yet. So once that session starts, by then we'll be ready with all the plans. Once that happens, it won't take long.

Again, these are finer details which the committee of secretaries is looking into.

We have said loans up to March 2016.

I'm sure we will manage it. The investment coming into the state will be normal. It's a big state but the investment climate was not very conducive, so it hasn't gone that well. We should be able to raise the amount now.