The Andhra Pradesh Chief Minister N Chandrababu Naidu is set to come out with an interim report on loan waiver for the farm sector, weavers and women self-help groups.

This report comes in the backdrop of severe opposition from the RBI and the banking sector, who have expressed their concern about such loan waivers impacting bank finances.

After assuming office as Chief Minister on June 8, Naidu had signed the crop loan waiver file, the first decision he took at a public meting held in Guntur in the presence of several Chief Ministers, Union Ministers and senior BJP leader LK Advani.

He had announced that a committee would be appointed which would present its preliminary document within 15 days and a final decision would be taken within 30 days thereafter. However, there is considerable concern and unrest in the farm sector over the loan waiver as it has a direct bearing on the current kharif crop season, which is just beginning.

The Chief Minister has appointed a committee that includes former Nabard Chairman, P. Kotaiah, and former IRDA chief, CS Rao, as subject experts, besides other members.

With scarce resources and State finances under severe strain, and stiff opposition from the banking community, the Naidu Government’s next move on the waiver is being keenly watched. Political circles too are keenly waiting to see what this report will be about.

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