Ahead of polls, Haryana govt waives Rs 4,750 crore of interest, penalty on crop loans

Khattar said around 10 lakh farmers — who had borrowed from Primary Agriculture Cooperative Societies (PACS), District Cooperative Central Banks (DCCB) and Land Mortgage Bank (LMB) — would be benefitted, adding that 5 per cent penalty, which was imposed on farmers who failed to repay loans taken from PACS, will now be completely waived.

“It will give a benefit of Rs 2,500 crore to borrowers of PACS,” said Khattar. The chief minister further said a benefit of Rs 1,800 crore will be given to borrowers of DCCB if they pay the principal amount along with simple interest by November 30.

“Around 85,000 farmers had taken loans worth Rs 3,000 crore from DCCB. Out of which, accounts of 32,000 farmers involving an amount of Rs 800 crore have turned NPAs,” said Khattar.

Khattar said that farmers would pay 2 per cent interest for loans less than Rs 5 lakh, 5 per cent for loan between Rs 5 lakh to Rs 10 lakh and 10 per cent interest on loans in excess of Rs 10 lakh. “It will give a benefit of Rs 1,800 crore to farmers,” he said.

In case of a loan from LMB, Khattar said that out of total 1.10 lakh borrowers, accounts of 70,000 had been declared NPAs. Out of their total outstanding payment, Rs 750 crore was the principal amount and Rs 1,400 crore as interest and penalty, he said.

“Their penal interest would be waived. Farmers will have to pay 50 per cent of simple interest and rest will be borne by the state government. It will give a benefit of Rs 450 core to farmers,” he said.

The announcement comes days after the BJP government in the state gave approval for providing loan of Rs 60 crore to Naraingarh Sugar Mill in Ambala district so that it could release the due payment to sugarcane farmers. The farmers were on warpath for the past six months. They had even held protest in flooded Meghna river apart from a half-naked protest march.

Besides farmers, the Cabinet had also restored several benefits to the sportspersons, which were withdrawn in past few years and which had drawn sharp criticism from athletes.

(Inputs from PTI)