G.O Rt.No.69 Telangana Crop Loan Waiver Scheme Guidelines

Telangana G.O Rt.No.69 Dated 13.08.2014. Telangana Crop Loan Waiver Scheme G.O 69. Telangana Govt Crop Loan Waiver Guidelines.
The new Government of the State of Telangana has assured the farmers that, as a first step towards alleviating their hardship, a scheme will be introduced for the waiver of their outstanding crop loans. In the current dispensation, crop loans are sanctioned for a period of one year and rolled over at the end of the year on payment of interest. Thus, there is no fresh cash inflow to farmers thus forcing them to purchase high cost inputs on credit at a very high interest. The Government of Telangana is convinced that unless this cycle is broken with a one-time crop loan waiver, farmers will remain trapped in perpetual indebtedness. This measure will also enable the farmers to make fresh investments in agriculture. Keeping in view this imperative, the Government of Telangana has formulated the Crop Loan Waiver Scheme. This scheme covers only institutional loans and does not cover loans from non-institutional sources.

Scope of the Telangana Crop Loan Waiver Scheme and Eligible Amount

This scheme will cover short term production loans, and crop loans against gold, disbursed to farmers in the Telangana State by scheduled commercial banks, cooperative credit institutions (including urban cooperative banks) and regional rural banks, collectively called as the “lending institutions”.
The eligible amount for debt waiver would be limited to the amount of loan (together with applicable interest), which is disbursed and outstanding as of 31st of March, 2014 or Rs.1,00,000 per farmer family whichever is lower.
The farmer family is defined as head of the family, spouse and dependent children.

The following loans/accounts shall not be eligible under the Crop Loan Waiver Scheme.

a) Advances against pledge or hypothecation of agriculture produce other than standing crop
b) Tied loans
c) Closed crop loan accounts
Short term production loan means a loan given in connection with the raising of crops which is to be repaid within 18 months. It will include working capital loan, for traditional and non-traditional plantation and horticulture.

Implementation Guidelines of theCrop Loan Waiver Scheme

a) Preparation of list of farmers with outstanding crop loan dues and arriving at the amount of claim
i) Each lending institution – bank branch - which has disbursed short term crop loans to farmers shall prepare village-wise list of farmers with outstanding crop loan dues as on March 31, 2014 in the prescribed format (Annexure-A).
ii) Each lending institution, shall also prepare a village -wise list of farmers who have outstanding dues as on March 31, 2014 in respect of crop loans taken against gold in the prescribed format (Annexure-B).
iii) The list of farmers in Annexure-A and Annexure-B should be compared by the Bank Branch Manager and a final list of farmers who have outstan ding crop loan and limited to a maximum extent of Rs.1.00 lakh should be prepared by the Bank Branch Manager in the format designed in Annexure-C. One copy of Annexure-A, B, C should be sent by the Bank Branch Manager each to LDM and District Collector.

Download Telangana G.O Rt.No.69 Dated 13.08.2014 of Crop Loan Waiver Scheme Guidelines

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