Newly appointed chief ministers – Kamal Nath in Madhya Pradesh and Bhupesh Baghel and Chhattisgarh – earned praise for losing no time in fulfilling their major election promise of waiving farm loans.
Like Kamal Nath, who waived farm loans up to Rs 2 lakh, Bhupesh Baghel announced that the Cabinet had decided to waive loans of more than 16 lakh farmers to the tune of Rs 6,100 crore.
Baghel also said that the minimum support price (MSP) for paddy will be increased to Rs 2,500 per quintal and that a special investigation team would probe the Jhiram Ghati Maoist attack, in which several Congress leaders were killed.
“Congress president had announced that farm loans will be waived off within 10 days and MSP for maize will be increased from Rs. 1700 to Rs. 2500 per quintal. These two decisions have been taken,” Baghel said at a press conference after chairing the first cabinet meeting of the newly-formed Congress government in the state yesterday (Monday, Dec 17).
Short-term farm loans to the tune of over Rs. 6,100 crore of over 16.65 lakh farmers, drawn from cooperative banks and Chhattisgarh Gramin Banks, as on November 30, will be waived immediately and loans borrowed from commercial banks will also be waived after proper examination, said Baghel.
The agricultural loan waiver was the Congress’ key promise to the farmers of Chhattisgarh ahead of the Assembly polls. In MP, after Chief Minister Kamal Nath waived farm loans shortly after he took oath as the Chief Minister, the Congress government immediately issued a notification stating that the administration has decided to write off short-term loan of eligible farmers drawn from nationalized and cooperative banks up to the limit of Rs 2 lakh as on March 31, 2018. CM Nath said the benefit will be given from the current year. At least 34 lakh farmers will benefit and the move will would cost the exchequer Rs 35,000 crore to Rs 38,000 crore, said officials of the agriculture department.
In Chhattisgarh, another significant decision taken was about setting up an inquiry into the naxal attack that wiped out the Congress leadership in the state in May 2013. “Our third decision is related to Jhiram Ghati. 29 people including prominent leaders like Nand Kumar Patel were killed. The conspirators have not been exposed. No such massacre of politicians ever took place in history. To catch the culprits, SIT has been formed,” the newly-elected Chief Minister said, adding that the incident was a “criminal political conspiracy.”
The “feel-good” factor from these quick, significant decisions was soon marred by Madhya Pradesh CM Kamal Nath saying that migrant workers from UP and Bihar come to MP and local people don’t get jobs, bringing in a clause that industries would get incentives only if they hire 70% staff from MP.
He said employment was another promise made and he will strive to provide people of Madhya Pradesh with jobs. The CM was quoted as saying, “Our schemes of providing incentives of investment will only be imposed after 70% people from Madhya Pradesh get employment. People from other states like Bihar, Uttar Pradesh come here and local people don’t get jobs. I have signed file for this.”
Asked if this would require changing the existing policy, he said, “I have already done (signed) it.”
He announced the opening of four garment parks in the state, and added the local jobs rider: “We have laid the first condition to generate jobs for local people and only those industries that promote jobs for locals will get incentives.”
Defending the farm loan waiver, Nath said: “When banks write off loans of big industries and industrialists, often 40%-50%, then no economist raises any question. But when farm loan is waived, they cry with pain. Economists give lectures on revenue loss but I think they do not know about farmers, farms and villages. Banks must consider this.”
Another administrative order issued by the new government raised to Rs 51,000 the assistance given under the Kanya Vivah Yojana from Rs 25,000. This was another populist scheme initiated by the BJP government under Shivraj Singh Chouhan.
Nath’s ‘outsider’ comment drew fire from opponents. Reacting sharply to Nath’s remarks, JD (U) spokesperson Neeraj Kumar said: “The MP CM’s statement is against the principles of federalism. People from one state can move to another state and work there. Kamal Nath has hurt the people of Bihar and other states working in MP. We want to know if AICC president Rahul Gandhi agrees with what Nath says.”