Delays slow down loan waiver process

Mumbai: Payment to the next batch of beneficiaries under the state government’s farm loan waiver scheme has been stuck since past three months due to procedural delays.

The state has approved a list of 46 lakh farmers under the scheme, out of which, money has been deposited to more than 37.52 lakh bank accounts. Individual scrutiny work at the local level has delayed the process, senior officers of the cooperative department told The Asian Age.

After more than ten months since receiving applications, the government cleared over 46 lakh applications in March. Out of this, 22 lakh accounts were for the loan waiver while 15 lakh were for the incentive scheme. The government gave the incentive to farmers who paid loans regularly. However, nearly 8 lakh accounts were under the one-time settlement (OTS) scheme, under which, farmers who had taken loans of more than Rs 1.5 lakh had the option to pay the balance amount to get the loan waiver benefit of Rs 1.5 lakh. But only 40,000 farmers opted for the OTS scheme. The government has spent Rs 14,982 crore till date for the scheme, said officers of the cooperative department.

After initial scrutiny, 67 lakh applications were processed of which 46 lakh accounts got the government’s nod for the waiver or incentive scheme. Due to the delay, lakhs of farmers were rendered ineligible for new loans.

The cooperative department asked local officials to scrutinise the information provided by banks and those submitted by farmers.

A green list of nearly 2 lakh farmers’ accounts is almost ready for clearance, said a senior officer.