Rahul gandhi’s up yatra_ by promising farm loan waiver, congress vp is actually hurting kisan – firstpost

For a moment, let’s ignore the real intention behind Gadhi’s statement. Gas 10 ethanol It could have either come from his genuine concern for the struggling farmers in UP or was simply an idea born in the heads of Congress’ backroom strategists to woo the UP farmer. 1 unit electricity cost in kerala No matter what, by giving a promise of loan waivers, Gandhi is in fact doing a disservice to those very poor farmers (by destroying their credit culture), the banks (putting their loans at risk) which have been lending to them and, thus doing great harm to the economy.

Those who advised Gandhi to use the loan waiver plank to woo the UP farmer need to introspect, since such gimmicks have hardly translated in the past to votes, especially in states like UP. Electricity transmission Even if one assumes that loan waivers are done in UP and electricity bills are cut, most likely, the whole episode will turn out to be another version of the ‘Cot tragedy’ seen in Gandhi’s inaugural rally in UP, where the big ‘takeaway’ for the audience from Rahul-rally was the ‘cots’ themselves, not the idea Gandhi wished to convey through his ‘Khat sabha’ model. Electricity grid code The simple reason is that the mob will always endorse you if you offer freebies, but the loyalty thus gained doesn’t last.

If Gandhi is serious about the welfare of farmers, the Congress VP should do away with the ‘loan waiver’ plank since it actually hurts the farmer ultimately. Electricity magnetism and electromagnetism It works this way: The very announcement of loan waivers destroys the credit culture of the borrowers and has a wider cascading impact across that particular region. Gas works park address Past experience shows this begins to happen on Day One of the announcement. Electricity vancouver wa Even the honest borrowers, who have been paying his dues diligently, will feel fooled and stop paying back, waiting for the waiver to happen at some point.

Such deterioration in the credit culture will immediately punch holes in the agriculture loan portfolio of banks, in turn, making them stop all fresh funding to everyone who have defaulted on payments. Extra strength gas x while pregnant Already farm loan NPAs (non-performing assets) are a big chunk of bad loans for many banks. 9game According to senior bankers, this has happened when the UPA announced Rs 70,000 crore loan waiver in 2008 and when the Andhra, Telangana governments announced loan waivers to farmers in 2014. J gastrointest oncol impact factor Thus ultimately, it harms both the bank and the borrower. Electricity and magnetism lecture notes It takes years to clear the mess and reinstate the trust between the two.

In other words, even if one assumes that the loan waiver indeed reaches the intended beneficiary — the poor farmer (in many cases it doesn’t happen in reality), the good news for him ends right there. Electricity labs high school After that, he is practically a loan defaulter in the eyes of his lenders. Electricity in indian villages The next time the farmer walks into a bank seeking a fresh loan, which he will for the sake of continuing his farming, the lender wouldn’t offer a fresh loan looking at his past credit history. Gasco abu dhabi location This would apply to all farmers, whose names are mentioned in the loan waiver list.

In fact, the Reserve Bank of India (RBI) has highlighted the perils of loan waivers in the past. Gas quality Speaking at an event in Udaipur, former RBI governor, Raghuram Rajan asked an important question.

“How effective these debt waivers have been? In fact the studies that we have typically show that they have been ineffective. Gas tax oregon In fact they have constrained the credit flow post waiver to the farmers.”

The worst part is that once the banking system is shut for the farmer, he will then be forced to seek the assistance of the private moneylender, paying an astronomical rate of interest and thus putting his life’s savings, land and honor at risk. Frictional electricity examples But the farmer, unfortunately, doesn’t realise this risk because it is human nature to grab freebies without a second thought.

In the process even the good borrowers who used to pay back on time get into the bad list. Electricity will not generally cause When the Andhra/ Telengana loan waiver announcement had happened, rating agencies had warned about the serious repercussions such actions can have on the system. Gas efficient cars under 5000 “These schemes seem to have yielded electoral gains, similar announcements could be made in other states as well. Electricity storage handbook The most vulnerable would be states in which elections are nearing,” India Ratings had warned then.

Rahul’s reasoning that if corporate loans can be waived off, why cannot the same be done with the farmer loans lacks logic. Electricity deregulation choices and challenges One mistake cannot correct another. Electricity use estimator If corporates have fooled the banking system and if bankers are party to it, the remedy lies in investigation, legal action and recovery of loans — not compensating it with another bigger mistake. Arkansas gas and oil commission Rahul’s logic is wrong here and is counter productive for the system.

If the idea is to help the farmer, it should be done through assisting him with measures that do not harm him ultimately. Electricity projects for grade 6 The minimum support price is an idea worth debating in this context. V lab electricity Also, fresh funds can be made available on easier terms to the deserving farmers through nodal agencies such as National Bank for Agriculture and Rural Development. Us electricity hertz Already, under current norms, banks too have to lend at 18 percent of their priority sector loans to the farmer.

Secondly, Gandhi’s promise to halve the electricity Bills too lacks sense. Gas in chest In UP, the timely availability of power is the bigger issue farmers face, more than the cost of the power. Electricity word search printable Halving the power bills will only help to break the back of the state electricity board that is already fighting a financial crisis. Electricity merit badge worksheet answers Lack of availability of power in UP is a severe problem and doesn’t confine to the farming community.

According to this June, 2016 Hindustan Times report, UP will be the country’s fourth most power-deficient state only after Bihar, Assam and Jammu & Kashmir. Electricity billy elliot chords While the state will experience an average demand for 16,000 MW during the year, it will be able to meet only 14,454 MW demand, thus registering a shortfall of 1,546 MW which will be as high as 9.7 percent of the total demand, the report said. Electricity towers in japan That tells us that the problem in the state is more on account of power deficiency, not the cost of power. Gas in back and stomach Gandhi should have spoken on the core issue, but he chose to play the populist card.

To understand the futility of his exercise, Gandhi needs to only remember that if farm loan waiver was the miracle cure the Congress party needed to win votes, it wouldn’t have ended up with less than 30 seats in the 2012 UP polls and then lost terribly in the 2014 Lok Sabha polls. Electricity prices per kwh 2013 Even then, Congress leaders had spoken of the 2008 farm loan waiver in political rallies. Electricity games Gandhi needs to rethink on his poll strategy.