(a) whether the attention of the Government has been drawn to the news item
captioned, `India`s debt burden truly rural` appearing in the Statesman dated
30 December 2005;
(b) if so, facts of the matter reported therein; and
(c) the efforts made by the Government to reduce the debt burden in rural areas ?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a): Yes, Sir.
(b): National Sample Survey Organisation has conducted a survey on `Household
Indebtedness in India as on 30th June, 2002`` as part of the All India Debt and
Investment survey in the 59th round. (January-December .2003), The findings were
released in 2005. The important findings of the survey are at Annexure.
(c): Certain measures were announced on June 18:, 2004 fur doubling the flow of
credit to agriculture in three years and to provide relief to fanners. The
announcement envisaged debt restructuring for farmers in distress/arrears, one
time settlement for small and marginal farmers and extension of loans to farmers
indebted to informal sources. Further, in order to offer small borrowers an
opportunity to settle their NPA accounts with banks and become eligible for fresh
finance, all scheduled commercial banks (including Regional Rural Banks and Local
Area Banks) have been advised to provide a simplified mechanism for one time
settlement of loans where the principal amount is equal to or less than Rs.25000/-
which have become doubtful and loss assets as on September 30, 2005. In case of
loans granted under government sponsored schemes, banks have been advised to
frame separate guidelines following a state- specific approach to be evolved by the
State Level Bankers` Committee (SLBC). This mechanism will not, however, cover
cases of fraud and malfeasance. The borrowers whose accounts are settled under
this mechanism will be fully eligible for fresh loans.
Annexure: (USQ-36)
HOUSEHOLD INDEBTEDNESS IN INDIA AS ON 30.06.2002 ALL INDIA DEBT AND INVESTMENT SURVEY NSS
FIFTY-NINTH ROUND JANUARY-DECEMBER 2003 - NATIONAL SAMPLE SURVEY ORGANISATION - IMPORTANT
FINDINGS
1. The aggregate debt per family belonging to rural household is Rs.7539/- and that of
urban household is Rs.l 1,771/- as on 30th June 2002 as may be seen from the following table:-
Amount of Cash Dues of Households as on 30 June 2002
Estimates Rural URBAN Total
No. of Households (in 00,000) 1,479 555 2,034 Percentage of Households 73 27 100 Total Amount of Debt (in 00,00, 000) 1,11,468 65,327 1,76,795 Percentage of Share of Debt 63 37 100 Incidence of Indebtedness (%) 26.5 17.8 24.1 Average outstanding Debt 7,539 11,771 8,894