Jaipur: Rajasthan chief minister Vasundhara Raje on Monday announced a one-time crop-loan waiver of up to Rs 50,000 for small and marginal farmers, and land revenue exemption. This will cost the state exchequer Rs 8,000 crore.

The waiver is for marginal farmers in the overdue and outstanding category of short loans provided by cooperative banks.

Raje also announced the constitution of a farmers' debt-relief commission that would work as a permanent institution. Farmers will be able to get relief on merit basis.

Several states, including Maharashtra, Uttar Pradesh and Punjab, have offered loan waivers to farmers.

Maharashtra has waived loans up to Rs 1.5 lakh per farmer. The state will spend Rs 34,020 crore on the scheme.

Uttar Pradesh is writing off loans to the tune of Rs 30,729 crore. Small and marginal farmers with loans of up to Rs 1 lakh each have been covered under the scheme.

Karnataka has announced that crop loans from cooperative banks up to Rs 50,000 each will be waived. The government is spending Rs 8165 crore on the scheme.

Raje announced land revenue exemption that would benefit almost 40-50 lakh farmers. To promote agro-based industries and services, she said the government would increase the maximum limit of interest subsidy in a year from Rs 5 lakh to Rs 7.5 lakh.

Interest subsidy for women, the disabled, SCs and STs and entrepreneurs who are bonafide residents of Rajasthan and are up to 40 years of age, was enhanced to 6 per cent from 5 per cent. PTI