Andhra Pradesh chief minister-designate Chandrababu Naidu announces farm loan waiver
Naidu had aggressively sought the votes of farmers, and one of his poll-planks was a farm loand waiver
news Wednesday, June 04, 2014 - 05:30
The News Minute | June 4, 2014 | 12.39 pm IST One of the first things Andhra Pradesh Chief Minister-designate N Chandrababu Naidu has done is to announce a farm loan-waiver of Rs. 54,000 crore. The approval of the loan waiver is one of the first files Naidu is expected to sign after taking oath on June 8. During the election campaign, Naidu had aggressively sought the votes of farmers, and one of his poll-planks was a farm loan waiver, reports the Times of India (Farmers look forward to crop loan waiver by new Chandrababu Naidu government). As a part of the election campaign, the Telugu Desam Party had promised loan waivers in both Telangana and Seemandhra, reports DNA (TDP chief Chandrababu Naidu promises farm loan waiver in Telangana, Seemandhra). They have high expectations of Naidu and hope that he will made good on his pre-election promises on loan waiver, water supply and power for agriculture.Â Another report by The Times of India (Chandrababu Naidu to waive off farm loans totalling Rs 54,000 crore) says that the although the chief minister has announced the loan waiver, balancing the books might be a juggling act for Naidu. The report outlines the options that the Andhra Pradesh chief minister is considering to raise money for the loan waiver. One of them is to issue security bonds to banks against the loan amount.Â A Saye Sekhar for Firstpost (Chandrababu Naiduâ€™s tactic: Wrangle funds from govt by staying its trusted ally) analyses this move and what it will mean for the TDP-BJP alliance in the state, and also how the stateâ€™s finances will fare, with a revenue deficit of Rs. 13,579 crore, which resulted due to the bi-furcation of state into Andhra Pradesh and Telangana. Business Standard reports (Banks told to get ready for debt waiver in residual AP and Telangana) that the banks in both new states have been told to ready themselves for the waivers announced by both new governments. The New Indian Express (Grand Loan Waiver Promises of KCR, Naidu Irk Bankers) reports about the apprehension of the banks at a meeting of the State Level Bankers' Committee a few days ago.Â SLBC president CVR Rajendran took a more reconciliatory tone, saying: "...with the formation of two states, ample opportunities are created where banks have to play a key role in the economic development of both the states and its people."