Maharashtra CM Fadnavis to head panel reviewing farm loan waiver eligibility criteria

Last week, The Indian Express reported that a state Cabinet note said the scheme’s eligibility restrictions were among the reasons the government’s eventual expenditure is expected to be lower than the projected Rs 36,585 crore.

The Cabinet sub-committee will comprise the two Deputy Chief Ministers and the ministers for Revenue, Medical Education, Agriculture and Cooperation. The Principal Secretary, Cooperation Department, will serve as member secretary.

The government has also set up a second committee under the Chief Secretary “to make necessary amendments to the guidelines of the scheme for its transparent and effective implementation, as well as to coordinate with all departments.”

Besides the Chief Secretary, the panel will include the Chief Minister’s chief economic adviser and the administrative heads of the Finance, Cooperation, Agriculture, and Electronics, IT and Artificial Intelligence departments. The Cooperation Commissioner will be its member secretary.

A third committee, tasked with negotiating with banks, will be headed by the Additional Chief Secretary (Finance).

“To determine the proportion of waiver by negotiating with banks for concessions in the ledger balance according to the NPA (Non-Performing Asset) date, while extending the benefits of the Loan Waiver / One-Time Settlement (OTS) Scheme to farmers’ crop loans / restructured non-performing assets held with nationalised banks, private banks, and regional rural banks, a committee is hereby constituted under the chairmanship of the Additional Chief Secretary (Finance),” the GR said.

Its members will include the Principal Secretary (Cooperation), Managing Director (MahaIT), Administrator of the Maharashtra State Cooperative Bank, and the coordinator of the State Level Bankers’ Committee. The Cooperation Commissioner will be the member secretary.

The Punyashlok Ahilyadevi Holkar scheme, approved by the state Cabinet on June 2, earmarked Rs 36,585 crore, though the actual burden on the exchequer is expected to be lower. The government has faced Opposition criticism over eligibility conditions that could leave out a large number of distressed farmers.

Nationalist Congress Party (SP) MLA Rohit Pawar staged a three-day hunger strike from June 12 demanding a rollback of the eligibility criteria. Farmer organisations across the state have also been protesting against the conditions imposed under the scheme.