Now that Reserve Bank of India has agreed to reschedule the loans of farmers. Telugu Desam government is gearing up to carry out its poll promise of loan waiver. The complete details of the reschedule will arrive in couple of days and the government will decide the amount to be waived. The finalized amount will be converted to government loan and remaining have to be borne by the farmers. According to primary information, the amount is going to be 1.5 Lakhs on Crop loans and 50000 on Gold Loans.
Government is waiting to see for how many years the rescheduling will be done. If the time period is for 3 years, government may face some issues due to the deficit budget. If the time period is 5 or 7 years, then the government hopes to pull it off easily expecting the state treasury to recover. On the other side, as soon as the rescheduling is done, existing loans will be converted to Government loans and the farmers will be issued fresh loans for the upcoming crop season.
Chandra Babu Naidu is expected to decide the amounts to be reimbursed basing on the allocations in the Union budget which is due tomorrow. Government sources say the entire process will be complete by the end of this month.
