Punjab CM announces ₹590 cr loan waiver for farm workers & landless farmers ahead of polls

Ahead of the 2022 Assembly elections, Punjab Chief Minister Captain Amarinder Singh announced a loan waiver worth Rs 590 crore for labourers and landless agricultural communities under the farm debt waiver scheme, clearing the path for his government to deliver another key promise. An official spokesperson informed that the cheques would be issued at a state-level gathering on August 20 following a high-level meeting that was chaired on Tuesday. 

Punjab CM announces Rs 590 crore waiver

As per CM Amarinder Singh, the Punjab government will pay off loans amounting to Rs. 520 crore to 2,85,325 members of the Primary Agricultural Cooperative Societies (PACS), resulting in a relief of Rs. 20,000 per member. He instructed the Finance and Cooperation departments to begin the process of putting the decision into action on the ground.

The Congress govt in Punjab has also devised a Debt Relief Scheme for Farm Laborers and Landless Farming Members of PACS-2019, which will cover only consumption loans advanced by District Central Cooperative Banks in Punjab through Primary Agricultural Cooperative Societies to members of Primary Agricultural Cooperative Societies.

CM Amarinder Singh's announcements come as a part of the flagship "Debt Waiver Scheme". As per reports, 5.64 lakh farmers have had loans worth Rs. 4624 crore waived off under the scheme, which was announced as part of the Punjab Congress's 2017 election manifesto. In addition, loans availed by individuals of the SC and BC categories have been written off up to Rs. 50,000 each, with the SC Corporation waiving up to Rs. 58.39 crores in loans for 6405 beneficiaries and the BC Corporation waiving up to Rs. 20.71 crores in loans for 1225 beneficiaries.

Primary Agricultural Credit Society (PACS) is the smallest cooperative credit organisation. It is effective at the grassroots level (gram panchayat and village level).

Punjab Assembly election 2022

In February or March 2022, the Punjab Legislative Assembly elections will be held to elect 117 members to the 16th Assembly of Punjab Legislative Assembly. The current legislature, which was elected in 2017, will be dissolved on March 27, 2022, unless it is dissolved sooner. In the 2017 elections, the Indian National Congress party won 77 seats out of a total of 117. The ruling SAD-BJP alliance was pushed to third place with only 18 seats, while a new participant in Punjab politics, the Aam Aadmi Party, won 20 seats and became the official opposition party.

Picture Credit: PTI