Madhya Pradesh Chief Minister Kamal Nath. (file)The Congress government in Madhya Pradesh Saturday included nearly 20 lakh beneficiaries in the farm loan waiver scheme that was rolled out by Chief Minister Kamal Nath.
The state Cabinet extended the cut-off date from March 31, 2018, to December 12, 2018, the day the party was invited to form the government by the Governor. Prior to the extension, the number of potential beneficiaries was around 34 lakh — it has now risen to about 55 lakh. However, this is unlikely to increase the burden on the exchequer, which was initially pegged at Rs 38,000 crore.
Government sources said the payout is likely to remain Rs 38,000 crore as more than 2 lakh farmers will not receive the benefit either because they pay income tax or are elected representatives or currently employed by the state and central governments.
Cabinet Minister Jitu Patwari said nearly 55 lakh farmers, including 35 lakh small and marginal farmers, now stand to benefit from the scheme that promises to waive loans up to Rs 2 lakh. Loans taken on or after April 1, 2007, from cooperative banks, regional rural banks and nationalised banks qualify for the waiver.
The government has announced that programmes will be organised to distribute loan waiver certificates. The money will be transferred directly to bank accounts of beneficiaries from February 22. Farmers who have partially or fully paid their loans will also receive their Kisan Samman Patras the same day. The waiver will first be extended to small and marginal farmers.
The process to identify beneficiaries will begin on January 15 and separate lists with names of beneficiaries and their bank account numbers will be put up in gram panchayat bhavans. Information about different application processes will be provided in the gram sabhas that are scheduled to be held on January 26.
Loans given by corporates and farmer producer companies will not be covered under the scheme. Those who availed loans by mortgaging gold will also not be eligible for the waiver. Members elected to Parliament and Assembly; presidents of district panchayat, nagarpalika and nagar panchayat; mayors; chairmen of agricultural produce marketing committees; chairmen and vice-chairmen of boards, corporations of central and state governments; officers and employees (barring Class IV employees); and those who draw monthly pension of Rs 15,000 or more (barring ex-servicemen) have been excluded from the list of beneficiaries.
While the chief minister said that his government fulfilled the promise made during the election campaign, the BJP claimed that the state government was compelled to extend the cut-off date due to pressure from the Opposition. Former CM Shivraj Singh Chouhan said the extension was a result of the BJP’s struggle and demanded that the government immediately compensate farmers who suffered crop loss due to frost.
Kamal Nath, however, hit back at Chouhan for claiming victory. “Those who made fun of loan waiver are now appropriating the historic decision taken by Congress government,” he tweeted.
