The Andhra Pradesh Finance Department has released Rs 5,000 crore to Rythu Sadhikara Samstha (Farmers Empowerment Corporation) towards payment for Farmers’ Debt Redemption Scheme announced by the State Chief Minister, N Chandrababu Naidu.
In a Government Order, the Finance Department has announced the transfer of funds to provide the long-awaited relief to the farmer families who have been pauperised by moneylenders over the years.
The farmers corporation shall transfer an amount equivalent to the debt eligible for redemption of the farmer families having Rs 50,000 and below and approved for redemption in phase-I. Those farmer families having debt eligible for redemption above Rs 50,000 and below Rs 1.5 lakh will be transferred an amount equivalent to 20 per cent of the outstanding debt eligible for redemption.
In the case of farmers who are approved for coverage under the Debt Redemption Scheme, and having an outstanding eligible debt of more than Rs 50,000, the Rythu Sadhikara Samstha will issue subsidy certificates that would carry an annual interest of 10 per cent.
This could be redeemed by the farmer in four equal annual instalments, or earlier, as determined by the Government after periodic review.
The Government is set to announce separate guidelines for the administration of subsidy certificates by the Rythu Sadhikara Samstha.