Facing criticism that its newly approved Punyashlok Ahilyadevi Holkar farm loan waiver scheme could leave out a large number of distressed farmers, the Maharashtra government on Monday said it may consider modifying or changing certain conditions to ensure more farmers benefit from it.

The Indian Express on Monday reported that a note by the state cabinet stated that the scheme’s eligibility restrictions are among the reasons the state’s eventual expenditure is expected to be lower than the projected outlay of Rs 36,585 crore.

Maharashtra Agriculture Minister Dattatrya Bharne on Monday said, “We cleared the farm loan waiver scheme in the previous cabinet and certain things could not be made public due to the model code of conduct. As per the primary estimate, the scheme is of Rs 36,585 crore to benefit around 56 lakh farmers. If there are some farmers who do not fit into the criteria announced, we will discuss in the state cabinet and will bring it to the notice of the chief minister. A decision to change certain norms will be taken to ensure more farmers are benefited.”

The cabinet note on the proposal records that the Planning Department, which vets the financial implications of government schemes, flagged the proposal as imposing a significant financial burden on the state. The note stated that based on information received from various banks, approximately Rs 36,585 crore would be required to provide benefits under the scheme, but the actual financial requirement may be lower because the eligibility restrictions proposed. It also stated that commercial banks are expected to provide some concession, or haircut, on the outstanding loans of eligible farmers.

“Government takes a decision after considering all the aspects. The Chief Minister has taken a courageous decision of waiver even in these pressing times. We cannot satisfy everyone always. But if 56 lakh farmers are likely to be benefited, then it is not a bad thing at all,” Bharne said.

Meanwhile, the state government has written to the Election Commission of India (ECI) seeking permission to issue official notification of the Punyashlok Ahilyadevi Holkar farm loan waiver scheme as the state is under Model Code of Conduct (MCC) due to the June 18 legislative council elections.

“The government has sent a request to the ECI to allow to publish them the government resolution announcing the scheme. The ECI had given permission to the state government to take a decision on the scheme. Now whether an official notification can be issued or not has to be decided by the Commission,” an ECI official said.

Before the state cabinet meeting last week, Chief Minister Devendra Fadnavis had said that as per the ECI guidelines, the cabinet can approve the scheme but cannot make an official announcement as MCC was in place.

A farm loan waiver means the government pays off a farmer’s outstanding debt to the bank on their behalf. The Punyashlok Ahilyadevi Holkar scheme, approved by the state cabinet on June 2, earmarked Rs 36,585 crore for the purpose though the actual burden on the exchequer is expected to be lower.

The government has come under fire from the Opposition drawing criticism for imposing eligibility conditions that could exclude a large number of distressed farmers from the scheme.

Nationalist Congress Party (SP) MLA Rohit Pawar announced to launch an indefinite hunger strike from June 12, demanding a blanket farm loan waiver without restrictive eligibility conditions.