The Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, has approved modifications to the Punnyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojna 2026, a scheme worth Rs 36,585 crore benefiting 56 lakh farmers in the state. Under the revised scheme, the cap of Rs 50,000 for nearly 13 lakh farmers from the 2019 scheme has been removed, allowing them to avail complete loan waiver benefits up to Rs 2 lakh. Additionally, the requirement for timely repayment for the fiscal year 2026-27 has been eliminated, extending benefits to an additional 23 lakh farmers.
Fadnavis, during the conclusion of the state legislature’s monsoon session, announced significant changes to the Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojna (2026) in response to demands from legislators. The modifications include the removal of the Rs 50,000 cap for past beneficiaries and relaxation of the repayment regulation rule for the incentive plan. The adjustments aim to create the largest farm loan waiver in Maharashtra’s history.
The revised scheme now allows farmers who fell back into debt after benefiting from the 2019 scheme to receive the full Rs 2 lakh loan waiver, previously limited to Rs 50,000. This change ensures that distressed farmers are not left out, despite imposing an additional fiscal burden of Rs 3,000 to Rs 5,000 crore on the state exchequer. The incentive component offering Rs 50,000 cash back to regular borrowers has also been modified, making it easier for farmers to qualify for the benefit based on their repayment history.
