No proposal for KCC loan waiver under consideration: Govt

Jammu, Feb 13: The Government of Jammu and Kashmir on Friday informed the Legislative Assembly that it is not considering any proposal for waiver of loans availed under the Kisan Credit Card scheme.

The clarification came in response to a query raised by MLA Dr Devinder Kumar Manyal, who sought to know whether the government planned to waive KCC loans in light of losses suffered by the agriculture and horticulture sectors due to recent floods and the prolonged National Highway blockade.

In its written reply, the Agriculture Production Department stated that no such waiver is under examination at present. It explained that the Kisan Credit Card programme is a flagship credit initiative of the Government of India designed to provide farmers with timely and affordable institutional finance for agriculture and allied activities.

The department pointed out that the scheme is operated through designated banking institutions and does not fall under the financial ambit of the Union Territory administration. It further noted that crop loans under the KCC framework are extended at concessional interest rates, coupled with interest subvention benefits for prompt repayment in accordance with central norms.

The credit arrangement functions as a revolving cash credit facility, enabling farmers to access working capital for cultivation and related needs in a flexible manner. [KNT]