Fadnavis said loans of up to Rs 1.5 lakh taken between April 1, 2012, and June 30, 2016, would be waived, benefitting 35 lakh farmers.
Fadnavis said that the state would not be able to completely pay off the farmers loans owed to the banks in one go and hence would initiate talks with the banks for a staggered payment. "All ministers and MLAs will give one month's salary to support loan waiver". Fadnavis says that he is aware of the financial burden this scheme will cause.
However, he said, the state had still taken the bold decision in the interest of farmers. The Maharashtra government has also made a decision to give incentives to farmers who have been regular in paying their loans.
On his part, Uddhav had - during his meeting with the State Government-appointed GoM convenor Chandrakant Patil - recommended that the loan waiver limit be raised to Rs 2 lakh per farmer from the earlier Rs 1 lakh per farmer.
NCP leader Sunil Tatkare said that a variety of facets on the farm loan waiver were discussed with Fadnavis in Delhi. He also said that the loan waiver will put a burden on the state treasury.More news: UNICEF statement on Saudi contribution to Yemen cholera response
Fadnavis made it a point to mention that although agriculture loans per household in Maharashtra was nearly half as compared to other states, the state government still chose to announce the biggest loan waiver scheme.
The loan waiver scheme launched by Maharashtra will benefit around 19 lakh farmers in Maharashtra. Additionally, farmers who have been repaying loans regularly will be provided a special incentive package not exceeding Rs 25,000. "No other state has given such a large waiver", he said.
They were demanding a loan waiver, which was backed by all political parties.
In this year, the BJP government of Uttar Pradesh also waived the loans of farmers, immediately after coming to power. This decision was reportedly taken at a four-hour meeting at Sahyadri Guest House in Malabar Hill, Mumbai. "It would have further fuelled resentment among farmers", a senior minister said, requesting not to be named.
Initially, Fadnavis had stated that the government will release a loan waiver by October-end. "We are concerned more about the welfare of farmers than of politicians".
Fadnavis said that the loan waver scheme would be called Chhatrapati Shivaji Maharaj Krishi Samman Yojana. This was followed by Raju Shetti's march from Pune to Mumbai and the farmers' strike.