Bengaluru: The H.D. Kumaraswamy (HDK) Government gave a Varamahalakshmi festival gift to farmers and agricultural labourers yesterday, fulfilling one of its biggest promises made during the Assembly elections  by deciding to waive off farm loans from nationalised banks.

The government also decided to promulgate a Debt Relief Ordinance to give relief to farm labourers. The twin decisions of the government will benefit every BPL family in one way or the other. Over 23 lakh farming families having loan accounts in nationalised banks are set to benefit.

Addressing reporters along with Deputy CM Dr. G. Parameshwara after the State Cabinet meeting yesterday, HDK said, “The State Government will clear total unpaid crop loans amounting to Rs.30,163 crore in four yearly instalments. This sum includes Rs.7,419 crore interest too.”

The banks, he said, had agreed to issue loan-free certificates to farmers and provide them with fresh loans. He added that as promised, Rs.25,000 of crop loans per family will be waived. “In total, Rs.16.94 lakh farmer loans have to be repaid, while as many as 6.27 lakh farmers have taken fresh loans this year,” he explained.