Show concern, expedite loan waiver, renewal for farmers, Telangana FM tells banks

Telangana Deputy CM urges banks to expedite loan waiver process for farmers, emphasizing importance of timely disbursement.

Telangana Deputy Chief Minister Mallu Bhatti Vikramarka has urged banks to expedite the loan waiver process for farmers.

The Deputy CM, who holds the Finance and Energy portfolios, cited how the State government had recently implemented the Crop Loan Waiver (CLW) 2024 scheme for providing debt relief to farmers with loans of up to ₹2 lakh.

“Bankers should work with concern and not limit themselves merely to statistics and calculations. While the government has released ₹18,000 crore to banks towards farm loan waiver, so far only ₹7,500 crore has been released to farmers,” he said, calling for expeditious renewal and disbursement of crop loans.

Mr. Bhatti Vikramarka, who was addressing the 42nd State Level Bankers’ Committee (SLBC) quarterly review meeting organised at Mahatma Jyothirao Phule Praja Bhavan here, sought to caution against delay. Even a delay of one week in processing the loan waiver will come in the way of achieving the desired benefit, his office said in a release on his speech.

With agriculture backbone of the economy, the State government is implementing multiple measures such as crop loan waiver for eligible farmers up to ₹2 lakh, Rythu Bharosa investment support scheme, bonuses to farmers for certain eligible crops, implementation of major and medium irrigation projects, 24x7 free power to agriculture. All these initiatives are aimed at strengthening the share of agriculture and allied sectors.

Besides focusing on agriculture, the government as part of its priority for industrial sector development is evolving innovative policies, he said, urging banks to sanction more loans to small and medium-scale enterprises as such units generate large-scale employment. He also sought banks to provide interest-free loans to self-help groups under the Indira Mahila Shakti Scheme for industrial development. The State government plans to extend ₹1 lakh crore interest free loans to SHGs in five years.

The Deputy CM expressed his happiness over the banks encouraging performance in the first quarter of 2024-25 in terms of advances to priority sectors. In the quarter, 40.62% of annual credit plan for the priority sector has been achieved. The cash reserve ratio of the State improved to 127.29% in the quarter itself. He called upon banks to take up more projects under the Agriculture Infrastructure Fund, for enhanced development of rural areas.