Banks in Andhra Pradesh have sought clarity from the soon-to-be formed Governments of Telangana and Andhra Pradesh on the proposed debt-waiver scheme.
“Clarity is required on the nature of eligibility, and quantum of loans to be waived before the scheme could be could be implemented,” said CVR Rajendran, CMD, Andhra Bank, and President of State Level Bankers’ Committee (SLBC), while addressing the last SLBC meeting of United Andhra Pradesh here on Thursday.
SLBC data show Andhra Pradesh and Telangana have outstanding loans of ₹87,612 crore and ₹49,560 crore, respectively.
In the election manifestoes of the Telugu Desam Party (TDP) and Telangana Rashtra Samithi (TRS), loan waivers for farmers and self-help groups are projected at around ₹82,000 crore in AP and ₹20,000 crore in Telangana.
However, the SLBC did not authenticate the figure as it was for the new governments to commit figures. “Let’s not discuss the figures. They are threatening and should be kept away from the media,” Rajendran said, adding that it could be lower than the projected amount.
Referring to the performance of banks in the year-ended March 31, 2014, he said banks had surpassed the annual credit target of ₹67,224 crore during the year ended March 31, 2014. The credit flow to agriculture stood at ₹73,494 crore.
IYR Krishna Rao, Chief Secretary-designate for the residuary State of Andhra Pradesh, said banks along with State governments should draw up an action plan to implement debt-waiver.
“This is a massive task but there is a need to adhere to this election manifesto promise by banks and the government, especially in Andhra Pradesh,” he said.
PK Mohanty, Chief Secretary, Govt of Andhra Pradesh, said the existing crop loans of 2013-14 had to be rescheduled due to drought and cyclone across the State.