Money was withdrawn from at least 14,000 accounts of farmers, following which the Karnataka government has faced heavy criticism. In an attempt to rectify its mistake, the government is set to waive off loans in one go.
Bengaluru: The Karnataka government has ordered release of money toward farm loan waivers in commercial banks in one go as opposed to the four-instalment method announced in the budget last year.
The money will be deposited in the accounts of eligible farmers in one go, the government said in its June 11 order.
The loan waiver comprises restructured loans of Rs 2,812 crore, overdue loans of Rs 3,057 crore and incentive for regular loans of Rs 720 crore, which farmers had taken from the nationalised banks, it said.
The government, however, has not taken a call on the non-performing asset (NPA) loans, which are eligible for waiver. There are 1.08 lakh farmers with a loan of Rs 965 crore under the NPA loan category.
The government has cleared the loans of 7.5 lakh farmers by paying Rs 3,930 crore to the commercial banks. It has paid Rs 4,830 crore to the cooperative banks benefiting 11.2 lakh farmers.
Chief minister HD Kumaraswamy in July of last year announced waiver of farm loans to the tune of Rs 46,000 crore that will benefit approximately 42 lakh farmers and will be executed in phases over a period of four years.
This scheme was part of the JD(S) manifesto, which chief minister HD Kumaraswamy implemented after taking its ally Congress in the government onboard.
Officials, on Wednesday, said the chief minister has convened a meeting with the state level bankers on June 14 regarding the crop loan waiver.
Earlier on June 11, the farmers found the amount "disappearing" from their bank accounts. Several farmers from Yadgir in Karnataka, blamed the coalition government and said that the state government withdrew the money as they had not elected Congress-JD(S) candidates in the recent Lok Sabha election in the state.
With inputs from PTI
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