In what is being termed as the single biggest populist measure taken up by any state government in India, sources say that AP CM-elect Chandrababu Naidu is fully prepared to waive off a staggering Rs 54,000 crore that was taken by farmers as loans from different banks.
This will reportedly be the first file that Naidu will sign after taking over as chief minister on June 8. The formula here is that than repaying the banks, the state government will be issuing bonds to them, even as economists are not happy with such a grand populism by the CM of a revenue deficit state.
With around 5 lakh people and a dozen CMs attending his swearing-in ceremony, Naidu reportedly plans to make sure that the loan waiver gets national attention which will be signed in full public view by Naidu.
If loans taken by means of mortgaging gold ornaments are included, it will exceed Rs 60,000 crore. However, the state bankers committee reportedly told Naidu that waiver on gold loans is impossible. Of the total, farm loans accounts for Rs 36,000 crore while loans taken by self-help groups touches Rs 18,000 crore.
