The Madhya Pradesh cabinet has approved a proposal of an amount of Rs 2,123 crore to waive the interest on loans of 11.19 lakh defaulter farmers in the state.
The state cabinet gave its nod during a meeting on Tuesday, an official said, adding that farmers whose loan amounts and interest collectively are under Rs two lakh will be included in this scheme.
Chief Minister Shivraj Singh Chouhan last year announced that the state government will deposit in banks the interest accrued on farm loans of cultivators who did not repay their loans due to the write off promise made by the previous Congress administration.
The state cabinet on Tuesday approved the proposal of an amount of Rs 2,123 crore to pay the interest for farmers who defaulted on the loans taken from cooperative banks and societies, the official said.
The defaulter farmers will have to apply to avail the benefit of this scheme and the cooperatives will need to publish a list of such persons on a portal, he said.
CM Chouhan earlier alleged that several farmers had not repaid the farm loans due to the waiver announced by the previous Congress government.
He accused the Congress of not fulfilling the farm loan waiver promise leading to the default by farmers.
On the other hand, the Congress has claimed that around 24 lakh farmers from the state got the benefit of the farm loan waiver scheme during its government.