Press Statement issued by BJP National Spokesperson and MP,
Shri Ravi Shankar Prasad

The BJP expresses its serious concern over the circular dated 16th may 2008 issued by the State Bank of India from its Corporate Centre, Mumbai and addressed to all the local head offices whereby new financing for agriculture instruments like Tractor, Power Tiller, Harvester and other farm mechanisation activities have been put on hold with immediate effect. Most surprisingly in the same circular it is directed to educate the distressed farmer to avail of the benefit of debt relief scheme as announced by the Finance Minister in his Budget speech and the same time further new financing has been stopped forthwith. (Copy of Circular no. NBG/ABU/PDM-FM/2/2008-09 dated 16th May 2008 enclosed).

The BJP right from the very beginning has been apprehending that UPA Government is not at all serious in implementing the loan waiver scheme as announced because the most elementary requirement of making provision for Rs. 60,000/- crores in the Budget was not done nor the same has been explained till date as to from where from the money will come. Viewed in this context the latest circular of the apex bank i.e. the SBI only reinforces our apprehension of a complete lack of seriousness, aggravated by lack of resources in implementing the loan waiver scheme.

The argument in the Circular that fresh financing is being stopped because there is high overdue of agriculture advances is one of desperation. How much of industrial loans including mega-corporate loan have been waived, adjusted given one time settlement and plainly are locked-up in thousands of crores of non productive assets (NPA) of various companies is too well known. Has fresh financing been stopped in such cases? Obviously such a Circular would not have been issued without the green signal of the establishment. This stand would only cripple bonafide and genuine farming activity.

The BJP demands the immediate withdrawal of this Circular.

(Shyam Jaju)
Headquarter-in-charge