Maharashtra cabinet approves changes to farm loan waiver, rolls out MSRTC land development push

Mumbai, Jul 14 (PTI) The Maharashtra cabinet on Tuesday approved significant changes to the latest farm loan waiver scheme, removing key eligibility conditions, including the previous Rs 50,000 upper limit applicable for the beneficiaries of the 2019 waiver. The cabinet also decided to fast-track the redevelopment of Maharashtra State Road Transport Corporation (MSRTC) land by exempting the projects from the state's public-private partnership (PPP) policy. At a meeting chaired by Chief Minister Devendra Fadnavis, the cabinet approved amendments to the Punyashlok Ahilyadevi Holkar Farmer Loan Waiver Scheme, 2026, removing the earlier Rs 50,000 cap applicable to around 13 lakh farmers who had benefited under the 2019 loan waiver scheme. The change will enable these farmers to avail loan waiver benefits of up to Rs 2 lakh under the new scheme, subject to its provisions, according to a release issued by the Chief Minister's Office (CMO). The cabinet also withdrew the condition requiring farmers to take fresh crop loans and repay them on time during 2026-27 to qualify for incentive benefits. The decision is expected to benefit about 23 lakh farmers. The overall scheme aims to provide assistance worth Rs 36,585 crore to around 56 lakh farmers, according to the chief minister's office. In another major decision, the cabinet approved the implementation of the Centre-sponsored Urban Challenge Fund (UCF) in Maharashtra with suitable modifications in line with Central guidelines. The programme aims to encourage urban local bodies to raise market-based finance, strengthen governance, build institutional capacity and develop sustainable urban infrastructure. The state will create a separate budget head for the scheme and provide its matching share. Priority sectors include water supply and sanitation, creative urban redevelopment and developing cities as growth hubs. The government also approved the creation of project management and advisory mechanisms for effective implementation. The cabinet granted an exemption from the Maharashtra PPP policy for the redevelopment of surplus land owned by the MSRTC, saying this would help avoid procedural delays and accelerate projects. The transport corporation owns around 3,500 acres of land at nearly 850 locations, many of them in prime urban areas. The land is proposed to be developed through long-term leases for commercial, residential, mixed-use and industrial purposes to generate a sustainable source of revenue for the cash-strapped corporation. The government said MSRTC has already submitted proposals for the redevelopment of 213 sites. While exempting the projects from the state's PPP policy, the cabinet said final approval from the government would remain mandatory, and implementation would continue under the supervision of a high-level committee headed by the Transport Minister. Among other decisions, the Cabinet approved an asset monetisation policy for urban local bodies, sanctioned Rs 24.95 crore for sports infrastructure in Beed, enhanced rehabilitation assistance for released prisoners from Rs 25,000 to Rs 50,000, and approved the transfer of land for an international agricultural market at Dapchari in Palghar district. It also cleared amendments to the state's minor mineral extraction rules to levy a regulatory fee on minerals brought from other states. Later, speaking to reporters, Fadnavis said around 56 lakh farmers would benefit from the loan waiver scheme, which he described as the "largest loan waiver in the country". He said the government had expanded eligibility by removing conditions that had left many farmers outside its ambit. "Beneficiaries, who had earlier become ineligible for incentive benefits under previous loan waiver schemes, had now been included, with the government extending eligibility up to Rs 50,000 in such cases," the chief minister added. He said the cabinet also accepted a demand made by Mahayuti legislators, led by Randhir Savarkar, to extend the benefit of the waiver up to loans of Rs 2 lakh for the affected category of farmers. "For the first time in the state's history, these farmers have also been included in the loan waiver scheme," the chief minister said. He added that the government has also removed the condition requiring repayment during 2026-27 to qualify for the incentive. Farmers who repaid their dues during 2025-26 would now also receive the incentive benefit, making many previously ineligible farmers eligible. Defending the government's decision to undertake public-private partnership (PPP) development of Maharashtra State Road Transport Corporation (MSRTC) land parcels, Fadnavis said no land belonging to the corporation would be sold. "Not a single plot will be sold. The ownership of all land will remain with the MSRTC. Only long-term leases will be granted as part of a planned development model," he said. He criticised organisations opposing the move, saying they were only opposing every decision without offering solutions to improve the financial health of the loss-making transport undertaking. PTI MR NSK