Crop Loan Waiver: Can uncut red sanders trees be pledged?

Crop Loan Waiver: Can uncut red sanders trees be pledged? - Sakshi Post

Chandrababu Naidu perhaps is the first chief minister in the country who proposed to pledge live, uncut forest produce.

But experts say that the proposal of the 'chief minister with nine years experience' is typically Tugluqian in nature and can never become a reality. The three major hitches are - the banks will not accept pledging of trees, the forest department will negative the proposal and thirdly, the Centre will not accede to the request.

Banks will not accpet pledging of live trees

Pledging of live, uncut trees is unheard of and the banks have no precedence of advancing loans for such pledges. The Banks will have to form a consortium and decide on the issue. Loans can be advanced only against pledging of material of corresponding value.

Forest department will not permit

Forests are national assets. The law of the land does not allow pledging of forests. This again is unheard of and the forest department will oppose this tooth and nail.

Centre will not okay the proposal

The Central Government, particularly under unyielding Narendra Modi, will never accept this proposal. In the event of the AP Government failing to repay, will the banks be allowed to cut the red sanders trees and auction them? Highly unlikely.

The moral of the story is - pledging of live, unharvested red sanders trees is a goner. This is a chimera that simply doesn't exist. It's time Chandrababu realises that he can not catch a black cat in a dark room.

-Raka@Sakshipost


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