Explanation:

The state government has recently reiterated that it has urged the Centre to waive the farmers’ loans from nationalised, commercial and land development banks through one-time settlement. The State government is ready to bear the farmers’ share in the waiver scheme.

The State government had passed a Bill in the Assembly for banning the land auction of farmers having agricultural land up to 5 acres, but the Governor has not yet given his nod. This situation has arisen because the Bill could not become an Act in the absence of the Governor’s assent.

The state government had recently sent a proposal to the nationalised banks to bring a one-time loan waiver scheme for the State’s farmers on the lines of a scheme introduced by the State Bank of India.

In the said scheme, the agricultural loans, classified as non-performing assets (NPA), were waived.

While 90% of the loans were waived by the bank, the farmers paid the remaining 10%, which the State government was willing to give.

Though the farmers’ loans from nationalised banks were declared NPA on November 20, 2018, they are yet to be waived.