‘Govt Hasn’t Written Off Loans of Corporates’
New Delhi: Finance minister Arun Jaitley asserted that the government had not written off any loans taken by corporates and asked the opposition to get its facts right.
He told the Lok Sabha that writing off loans was a commercial decision taken by banks and added that there had been no farm loan waiver sche- mes by the Centre since 2014.
Jaitley was responding to a supplementary question by Congress member Deepender Singh Hooda in which he alleged that the government had written off corporate loans but not that of farmers.
At the end of March, the total outstanding gross non-performing assets (NPAs) of agriculture and allied activities stood at .₹ 62,307 crore, as per data given by the minister in his writ- ten reply. The amount was .₹ 51,964 crore at the end of March 31, 2016. Jaitley said that information relating to the quantum of farm loans written off was not maintained centrally.
“However, RBI has reported that the reduction in non- performing assets (NPA) due to write-off (including compromise) for agriculture and allied acti- vities during FY 2016-17 in respect of scheduled commercial banks is to the tune of .₹ 7,548 crore,” he said. The minister also said that the government would make investments worth a record .₹ 2.92 lakh crore this financial year in the farm and rural sectors.
To a query on whether the central government would waive farm loans, minister of state for finance Santosh Kumar Gangwar said there had been no such decision.