Up to Rs 2 lakh loans in nationalized banks to be waived off
Cabinet decision
Bengaluru, August 24: As announced in the Budget, the JDS-Congress coalition government on Friday decided to waive off the loans from nationalized banks up to Rs 2 lakh. The Cabinet also decided to waive off current loans up to Rs 2 lakh availed from the nationalized banks and this would cost Rs 32,000 crore burden on the state Exchequer.
The Cabinet meeting chaired by Chief Minister HD Kumaraswamy took the decision. Speaking to reporters after the Cabinet meeting, Kumaraswamy said that earlier, nationalized banks have agreed for the loans waiver, but later backtracked from their decisions. The loan waiver would be implemented in phased manners in the next four years. Including the previous government’s loan waiver amount, the state government has the burden of Rs 43,000 crore now, for which, two nodal officers would be appointed to process it, he added.
It was already decided to accumulate the financial resources from the state Exchequer. The government has reserved Rs 6,500 crore for loan waiver during this financial year. In 2019-20, the government would reserve Rs 8,656 crore, Rs 7,876 crore in 2020-21 and Rs 7,231 crore in 2021-22 for loan waiver purpose. The banks have charged 12 per cent interest, for which Rs 7,419 crore interest would be borne by the government, he said.
From loan waiver decision, the government has to pay Rs 32,000 crore to the banks and it was decided in the Cabinet meeting on how to repay it in four years, he said.
Runaparihara Act again
Former chief minister Devaraj Urs had brought in Runaparihara Act in 1976. The loans availed from private money lenders and hand loans up to Rs 1,25,000 would also be waived off. The government has decided implement this Act through Ordinance under which those who recover loans forcefully would get one year jail term. It was decided to recommend the President for the approval, he said.
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EAM Jaishankar holds talks with EU counterparts in Brussels, discusses Iran conflict
New Delhi (PTI): External Affairs Minister S Jaishankar met with his counterparts from the 27 member states of the European Union (EU) in Brussels focusing on global flashpoints in Ukraine and West Asia as well as ways to deepen India's relations with Europe.
Jaishankar is on a two-day visit to the Belgian capital at the invitation of EU Foreign and Security Policy Chief Kaja Kallas to attend a meeting of the Foreign Affairs Council of the bloc.
It is the first high-level visit from India to Brussels headquartered EU after the two sides firmed up a landmark Free Trade Agreement (FTA) in January.
The external affairs minister held separate meetings with European Commission president Ursula von der Leyen and his counterparts from Germany, Greece and Belgium.
"A new chapter in India-EU ties has opened up in 2026," Jaishankar said in an apparent reference to the outcomes reached by the two sides in their summit meeting in January in New Delhi.
"The Foreign Ministers coordinate translating the various agreements into outcomes. Our conversation today therefore covered trade, investment, technology, mobility and defence in particular," he said on social media.
"The stronger convergence between India and EU in a multipolar world is also expressed in closer consultations. Discussed the West Asia conflict, the Ukraine situation and the Indo-Pacific in today's gathering," he said.
Apart from the FTA, the India-EU summit produced a plethora of other outcomes including a security and defence partnership and a comprehensive framework for cooperation on mobility.
The Foreign Affairs Council discussed how to better protect shipping in the Strait of Hormuz, including possible contributions by the EU's naval mission Aspides, and a European security strategy, Kallas told reporters.
Global oil and gas prices have surged after Iran has virtually blocked the Strait of Hormuz, a narrow shipping lane between the Persian Gulf and the Gulf of Oman that handles roughly 20 per cent of global oil and LNG (Liquefied Natural Gas).
The West Asia region has been a major source of India's energy procurement.
The closure of the strait is hurting the global economy and it is helping Moscow fund its war, Kallas said, days after the US temporarily lifted sanctions on procurement of Russian crude oil.
She said the focus on the Middle East should not take the focus away from the war in Ukraine, and the easing of US sanctions on Russian oil sets a "dangerous precedent".
Following his meeting with Von der Leyen, Jaishankar said her highly successful state visit to India in January marked a "turning point" in India-EU ties. "We are following up vigorously on it."
Von der Leyen said that the two sides had concluded a free trade agreement, "the mother of all deals", and signed the Security and Defence Partnership.
"Now we are focused on efficient implementation, to deliver for the people of Europe and India as soon as possible," she said.
"We also discussed developments in the Middle East and in Ukraine. De-escalation, stability and energy security are our shared objectives," she added.
After his talks with German Foreign Minister Johann Wadephul, Jaishankar said they exchanged notes on the conflict in West Asia.
"A valuable exchange of notes on the conflict in West Asia. Also took stock of the progress of our bilateral relations following the State visit of @bundeskanzler Friedrich Merz to India," he said.
