The YSRCP government led by Chief Minister Jagan Mohan Reddy on Wednesday decided to drop a farm loan waiver scheme, the 'Annadata Sukhibhava', that was implemented by the Chandrababu Naidu-led Telugu Desam Party (TDP) government.

An order issued by Special Chief Secretary (Agriculture) Poonam Malakondaiah stated that the government had decided to drop the decision to wave loans of farmers across the state in five instalments. The TDP had already waived loans in three instalments ahead of the polls, before the Model Code of Conduct (MCC) had come into place. It had promised to waive loans in the remaining two instalments after the elections. 

Speaking to reporters, Agriculture Minister K Kanna Babu said, “The TDP government delayed payment of fourth and fifth instalments and finally, it issued the GO just before election. The TDP regime also failed to make adequate financial provision for clearing loan waiver instalments in the Vote-On Account Budget,’’ he said. 

While scrapping the decision, the YSRCP government announced that it was planning to implement its own 'Rythu Bharosa' scheme for the farmers from October 15, and therefore, did not need to implement the TDP's scheme.

"We don't want to cheat the farmers like Chandrababu Naidu. Hence we have decided to scrap all such fraudulent schemes. We will implement Rythu Bharosa in a foolproof manner from October 15 to financially empower the farmers," the Agriculture Minister told a gathering in Amaravati. 

Under the YSR Rythu Bharosa scheme, farmers holding up to 5 acres of land will be given Rs 50,000 assistance a year. It will be given in four equal instalments of Rs 12,500, in addition to zero-interest loans and free bore-wells.

It was one of the nine key welfare schemes that were promised in YSRCP's manifesto, dubbed 'Navaratnalu'.

The YSRCP government had earlier said that Prime Minister Narendra Modi would be invited to launch the scheme in the state, with Jagan asking District Collectors to ensure its fair and transparent implementation.