After series of meetings on Loan waiver scheme Andhra Pradesh government put their plans in public. As per the latest decision state government decided to issue Loan Waiver certificates to farmers. Prior to this AP government had formed a committee named "Farmers Empowerment Corporation" to check the alternative solution to fulfill farmers Loan waiver promise.
Finally state government had proposed its plan of setting up corporation to the cabinet. As per sources its confirmed that the file related to corporation setup will be approved in October 1st cabinet meeting. Government will provide initial funding of 7000 crores for this committee. After this state government will issue bonds to farmers with a face value of 25000 for each. from the defined rules farmers can handover these bonds to the corporation after January 2015 for redemption. Corporation will payoff the loans to the banks directly on receiving these certificates from farmers from its capital. In addition to that farmers will get 10 percent interest from the state government after its maturity also.
Finally state government had proposed its plan of setting up corporation to the cabinet. As per sources its confirmed that the file related to corporation setup will be approved in October 1st cabinet meeting. Government will provide initial funding of 7000 crores for this committee. After this state government will issue bonds to farmers with a face value of 25000 for each. from the defined rules farmers can handover these bonds to the corporation after January 2015 for redemption. Corporation will payoff the loans to the banks directly on receiving these certificates from farmers from its capital. In addition to that farmers will get 10 percent interest from the state government after its maturity also.