Day before first loan waiver camp, government secures ₹5000 crore with guarantee

The Rajasthan government on Wednesday provided a written guarantee to the apex bank to secure Rs, 5000-crore loan that it needs to fulfill its promise of providing a one-time loan waiver to farmers.

This comes a day before chief minister Vasundhara Raje inaugurates the first camp to distribute loan waiver certificates worth ₹250 crore among 33,000 farmers in Banswara.

Abhay Kumar, principal secretary in the cooperative department, confirmed that government has agreed to provide guarantee to the apex bank for the loan. The bank was unwilling to issue the credit unless the government gave it in writing that it would repay the loan.

Kumar held day long meetings with officials from the apex bank, the finance department and the chief secretary to work out the modalities of the payment.

The National Cooperative Development Corporation has sanctioned ₹5000 crore to the Rajasthan State Cooperative Bank. The money has to be repaid in two installments within 270 days extendable by 90 days. If the government doesn’t repay within one year, it would be penalized by 2.5% on the principal and an additional 1% interest.

Additional chief secretary Mukesh Sharma said the government would repay ₹2000 crore this year and another ₹2000 crore in 2019 by taking a fresh loan. The government will also pay the interest amount, he added.

Raje had announced a one-time crop loan wavier of up to ₹50,000 for small and marginal farmer. Her government promised to bear a burden of ₹8,000 crore but had budgeted only ₹2,000 crore for the waiver. It had been knocking the doors of the banks seeking a loan of ₹6,000 crore

The government will issue loan waiver certificates to eligible farmers through camps, which will be held from June 7 to July 15.

The first camp will be held in Banswara. Raje, who has already reached the district, would issue the first certificates.

Meanwhile, addressing a Jan Sanwad programme in Gadi assembly constituency of Banswara, Raje claimed that her government was the first in the country to launch ambitious health schemes for the benefit of poor tribal people.

“Poor tribal people are being benefitted from free of cost advanced health services in private hospitals. BJP government has started such health schemes in the state for its people,” Raje said.

She claimed that unprecedented works in various sectors, including health, education, road, water conservation and power supply have been conducted in tribal areas during her government’s tenure.

Raje said in just over four years, her government spent ₹6,500 crore to carry out development works in Vagad area and another ₹1100 crore in Gadi. The previous Congress government had spent only ₹475 crore in both these areas, she claimed.

Raje also claimed that her government made Gramin Gaurav Path in 44 gram panchayats and upgraded 42 secondary schools to senior secondary schools.

The CM said her government was spending ₹1800 crore on free health services of which ₹1300 crore was earmarked for Bhamashah Swasthya Bima Yojana and ₹500 crore for free medicines.

She announced ₹1 crore for tackling drinking water shortage in six villages connected with Baloda drinking water project.

She also distributed two-wheelers among meritorious students and certificates to beneficiaries of other welfare schemes.

District in-charge minister Sushil Katara, MP Man Shankar Ninama, MLA Jeetmal Khant and officers of various departments were present on this occasion.