The Andhra Pradesh Government is set to finalise a decision on modalities of crop loan waiver by the month-end.

The Government is considering establishing a corporation through which bonds would be issued to farmers.

“Farmers can use bonds in banks to get fresh loans and crop insurance. They can also submit these bonds at the corporation and encash them,”according to the Resource Management Committee formed by the Government.

The Government is considering immediate cash payments, issuance of bond certificates and instalment system. A detailed approach will be announced in a couple of days.

According to the Chairman of Resource Management Committee on loan waiver, Y S Chowdary, the Chief Minister, N Chandrababu Naidu, and his team discussed the modalities of loan waiver on Thursday.

He said the State Government would come out with a final decision on the modalities of loan waiver (to farmers and DWCRA groups) by the end of this month.

The State Government had appointed Y S Chowdary as the Chairman for Resource Management Committee for suggesting ways to raise the required money for loan waiver.

Chowdary said the Chief Minister has promised to remove the burden of waiver on farmers.

Stating that Andhra Pradesh is facing a revenue deficit of Rs. 15,550 crore, Chowdary said the Government would overcome challenges and waive off farm loans as promised.

He added that the delay has also been partly because of lack of data from banks.

Source - http://www.thehindubusinessline.com/