4 cr farmers to benefit from debt waiver scheme

The Finance Minister has proposed that all agricultural loans distributed by scheduled commercial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and overdue as on December 31, 2007 will be covered under debt waiver and debt relief scheme. For marginal farmers and small farmers there will be a complete waiver of all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008. He has also called for completing the implementation of the two schemes by June 30, 2008. For other farmers, there will be a one time settlement (OTS) scheme for all loans that were overdue for the above period. Under the OTS, a rebate of 25 per cent will be given against payment of the balance of 75 per cent. Agricultural loans which were rescheduled and are restructured during 2004-06 as per the RBI guidelines will also be eligible for a waiver or an OTS on the same pattern. The total value of overdue loans being waived is estimated at Rs 50,000 crore and the OTS relief on the overdue loans is estimated at Rs 10,000 crore