Madhya Pradesh government waives off loans taken by tribals from unofficial sources

In a radical move, the Kamal Nath government in Madhya Pradesh announced on August 9 that all loans contracted by tribals from unofficial sources would be deemed 'discharged'.

In other words, tribals who have taken loans from unofficial lines of credit, such as from traditional money lenders, would not have to repay them. The government would not repay those loans either.

The announcement came on International Day of the World's Indigenous People that is commemorated on August 9 every year.

Madhya Pradesh Chief Minister Kamal Nath, while speaking at a function in Chhindwara, on Friday announced that tribals who have taken loans from 'sahukars' would not have to repay them. The announcement would be effective in 89 out of the 313 blocks in the state that are designated as tribal blocks.

Sources in the government said that they are not clear on the exact amount or type of loans that would be rendered discharged.

Kamal Nath, however, said that a total of 1.5 crore tribals in the state would benefit from the law.

Sources said that the Madhya Pradesh government would bring in an ordinance for this which would be sent for Presidential assent.

There is a ban on money lending in Madhya Pradesh and only those who have a license for money lending can extend loans.

Political watchers suggest that the move is meant to woo the tribal vote that is traditionally considered to be pro-Congress, but had in between gone to the Bharatiya Janata Party (BJP).

In 2018, the Congress won 28 out of 47 ST reserved seats in the 230 member Madhya Pradesh assembly, while in 2013, the party had won 15.

"This is a gift to the tribals from the Congress government led by Kamal Nath. Tribals, whose lands and jewellery are mortgaged with money lenders, would also be returned," said Congress media coordinator Narendra Saluja.

Besides the discharging of loans, the state government announced other measures aimed at wooing tribals too.

Earlier, a state holiday was announced for the first time on August 9 on the occasion of World Day of the indigenous peoples.

On Friday, Kamal Nath announced that ATMs would be opened in every tribal haat (market place), a tribal family would get 50 kg of food grains on birth of a child, 40 new Eklavya schools would be opened, shrines of tribals would be protected and restored and efforts would be made to record and preserve stories of tribal cultural icons.