Representative image.

MUMBAI: Maharashtra chief minister Devendra Fadnavis , at the helm of a cash-starved BJP-led government, announced on Saturday a Rs 34,022 crore loan waiver that would provide relief to 89 lakh farmers across Maharashtra.

Fadnavis said loans of up to Rs 1.5 lakh taken between April 1, 2012 and June 30, 2016 would be waived completely, benefitting 35 lakh farmers.

For 9 lakh cultivators with loans of more than Rs 1.5 lakh, the state would clinch a one-time settlement, and 45 lakh non-defaulter farmers would get a one-time special incentive of up to Rs 25,000, he added. “It’s a historic decision. The waiver amount declared by our government is the highest,” Fadnavis said.

After the farmers’ 11-day strike earlier this month, the CM had declared that loans up to Rs1 lakh would be waived. But farmers rejected this assurance and intensified their agitation, prompting the government to take a fresh review of the waiver scheme.

Fadnavis admitted it would be “difficult” for the debt-hit state — its total debt is in excess of Rs 3.73 lakh crore — to raise Rs 34,000 crore and said that given the burden this would place on the exchequer, “we will have no option but to drastically cut expenditure on key projects.”

However, he said, the state had still taken the bold decision in the interest of farmers. “We have approached nationalised banks for financial assistance. I’m sure leading financial institutions will come to our rescue as they have helped a few state governments,” he noted.

Fadnavis said his government had taken the decision on a complete waiver after consultations with NCP president Sharad Pawar, Shiv Sena chief Uddhav Thackeray, Swabhimani Shetkari Sanghatana leader Raju Shetti and leaders of the agitating farmers. “We are concerned more about the welfare of farmers than of politicians. Fortunately, we were able to convince the farmers and leading politicians too,” he said.

He emphasised that under the waiver scheme, which has been named the Chhatrapati Shivaji Maharaj Krushi Sanman Yojana, cabinet members, former ministers, sitting as well as former legislators and MPs, other elected representatives, state and central government employees and incometax payers would not be eligible. But the state’s Class IV employees had been exempted, he added.

Communist Party of India (Marxist) and Kisan Sabha leader Dr Ajit Navale told TOI that the government had taken only crop loans into consideration and ignored other farm-linked loans such as those taken for irrigation.



In Video: Maharashtra announces Rs 34,000 crore farm loan waiver