In what could be a big relief for farmers, the Karnataka government announced that money intended for farm loan waiver will be released in one-go to commercial banks.

In a June 11 order, the government said that instead of the four installments announced in the budget last year, eligible farmers will receive the money in their accounts in one installment.

The loan waiver comprises of restructured loans of Rs 2,812 crore, overdue loans of Rs 3,057 crore and incentive for regular loans Rs 720 crore, which farmers had taken from the nationalised banks, it said.

The government, however, has not taken a call on the non-performing asset (NPA) loans, which are eligible for waiver. There are 1.08 lakh farmers having a loan of Rs 965 crore under the NPA loan category.

The government has cleared the loans of 7.5 lakh farmers by paying Rs 3,930 crore to the commercial banks. It has paid Rs 4,830 crore to the cooperative banks benefiting 11.2 lakh farmers.

Chief Minister H D Kumaraswamy had in July last year announced waiver of farm loans to the tune of Rs 46,000 crore that will benefit approximately 42 lakh farmers and will be executed in phases over a period of four years.

This scheme was part of the JD(S) manifesto, which chief minister HD Kumaraswamy implemented after taking its ally Congress in the government on board.

Officials on Wednesday said the chief minister has convened a meeting with the state level bankers on June 14 regarding the crop loan waiver.

With Inputs From PTI