.....In Seemandhra’s case if the money asked for was for fulfilling infrastructure gaps—as Hyderabad has gone to Telengana—there would have been some merit in the demand. But Naidu wants to write off farm loans. The demand should not even be considered. This is particularly so, since the limit on state borrowing imposed by the Reserve Bank of India (RBI) is the only obstacle to Naidu’s plans of throwing R54,000 crore at his pet project. To put the figure in context,..................
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When Mr Naidu made this public pre-elections as part of Election Manifesto, why did not the RBI and IBA raise their objection to this? Second, why did not the Election Commission raise its objection by asking the parties to show resources for fulfilling such promises? Several other Agriculture States like Tamilnadu, Karnataka, Kerala, Punjeab, Orissa (where floods and cyclones are as recurrent or more recurrent than AP), Haryana and UP, or for that matter resource-starved West Bengal as well, did not indulge in this luxury of loan write-off by the State in spite of continuing farmers suicides. What the farmers want is more loans at cheaper interest rates and cross holding of risks through insurance mechanism and market stabilization mechanism. Compromises became promises and they became noose around the neck of the State. Now that RBI made its stand clear, it should pave the way for a solution.
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