Overview
- The state cabinet approved the Punyashlok Ahilyadevi Holkar loan-waiver scheme last week and earmarked Rs 36,585 crore for three parts: full waivers for overdue crop loans up to Rs 2 lakh, one-time settlements for larger debts, and incentives of up to Rs 50,000 for regular repayers.
- The cabinet note and the Planning Department warned the scheme creates a large fiscal burden but said the final bill should fall because the rules exclude many borrowers and banks are expected to accept concessions or haircuts.
- Key eligibility rules require loans to have been overdue by September 30, 2025 and unpaid by March 31, 2026 for full waivers and set repayment windows to March 31, 2027 for settlements and incentives.
- The scheme explicitly bars income-tax filers, salaried workers or pensioners with gross monthly pay above Rs 25,000, current and former elected representatives, and some PSU and cooperative employees, prompting opposition and farmer leaders to call the conditions unfair.
- Political pressure has grown as NCP (SP) MLA Rohit Pawar plans an indefinite hunger strike from June 12 and NCP chief Sharad Pawar has urged talks; the government says it may change norms and has asked the Election Commission for permission to publish the official notification while the Model Code of Conduct remains in force.