File picture: Assam Chief Minister Sarbananda Sonowal | Photo Credit: PTI

Guwahati: Months ahead of 2019 Lok Sabha Elections, the Assam government on Tuesday waived off loans of farmers. The farm loan waiver to the tune of Rs 600 crore will benefit around eight lakh farmers. Notably, the BJP-led government in Gujarat, earlier today, announced its decision to waive off electricity bills of connection holders in rural areas.

Assam Government spokesperson and Parliamentary Affairs Minister Chandra Mohan Patowary said that according to the scheme, the government will write off 25 per cent loan of farmers up to a maximum of Rs 25,000 of all farm debts.

He added that the waiver will be for all the loans taken from PSU banks and through Kisan Credit Card (KCC). At a cabinet meeting on Monday night, the government also approved an interest relief scheme which will authorise approximately 19 lakh farmers to apply for loans at zero interest from the next financial year.

"The debt relief scheme for farmers will waive 25 per cent of all loans taken till now. The benefit will be up to a maximum of Rs 25,000. This scheme will immediately benefit around eight lakh farmers," he said. Due to the 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.

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"There will be interest relief scheme of up to four per cent 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. Around 19 lakh farmers across Assam are expected to reap its benefit.

Meanwhile, the state Freedom Fighters' pension will also be increased from Rs 20,000 to Rs 21,000. The meeting also okayed the setup of a Micro and Small Enterprises Facilitation Council.

Earlier today, Congress chief Rahul Gandhi said he would not let Prime Minister Narendra Modi sleep until all farm loans are waived.