Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Dec 5: "We had pleaded with Prime Minister, Narendra Modi, to extend assistance in the matter of waiving farm loans outstanding in nationalized banks. But so far, there has not been any positive response. Even if the central government does not extend financial help for the implementation of this scheme, I will take steps to waive loans as promised earlier," asserted Karnataka chief minister, H D Kumaraswamy.

He was speaking to media persons after holding meeting with MPs from the state on the issue of projects of the state pending with the union government on Tuesday December 4.

Kumaraswamy stated that he had urged the central government to absorb 50 percent of the financial burden arising out of farm loans outstanding in nationalized banks. "I wrote to the Prime Minister twice on the subject. But the central government did no respond positively," he informed.

"We will not shirk from the responsibility just because the centre has failed to extend help to us. We will meet our promise. The farmers need not worry. Loan waiver process in respect of cooperative banks will begin on December 8 at Sedam and Doddaballapur. During January, we will organize a farmers convention with the participation of ten lac farmers for disbursing loan clearance certificates," he explained.

Kumaraswamy said that the concerned have been instructed to release first installment for loan waiver relating to cooperative banks. "We have been holding meetings regularly on the issue of waiver of loans in nationalized banks. The chief secretary of the state too is conducting meetings. Initially the banks agreed to sacrifice 50 percent of principal loan amount but now they are not agreeable. There are 2.20 lac NPA accounts in these banks. Barring these, the loans of others will be clleared to the extent of Rs 50,000 each during January. Rs 6,500 crore has been set aside for this purpose in the budget, and the remaining loan too will be waived soon," he explained.