Lucknow: Acting on its election promise, the Uttar Pradesh government on Thursday waived loans of farmers who had taken up to Rs 50,000 from cooperative rural development bank, a decision that would benefit 7.2 lakh farmers.
The announcement comes on a day when the party is celebrating its chief Mulayam Singh Yadav's 74th birthday here.
"The SP, in its manifesto, had promised to waive off loans of farmers upto Rs 50,000 which is being done today," Chief Minister Akhilesh Yadav told reporters.
He said the loan waiver would be given to farmers, who have been sanctioned loan upto Rs 50,000, and have deposited at least 10 percent of the actual amount by March 31.
"There remaining loan, including interest, is being waived off," he said.
He said that as a result of the decision taken by the government, loan amounting to around Rs 1650 crore would be waived off and would directly benefit around 7.2 lakh farmers.
Akhilesh said that a provision of Rs 500 crore had already made in the state budget and another Rs 500 crore would be made available.
"The party has promised that provision of auctioning mortgaged land of the farmers on which loan has been taken would be abolished and in such a situation loan would be waived off," he said.
The CM said that the SP was of the belief that unless and untill farmers prosper and they get help, state and country could not move forward on the path of development.
"It has been continuous efforts of the SP to provide facilities to farmers," he said.
Regarding cane price, Akhilesh said that it would be fixed very soon and it would be such that farmers get benefited.