Maharashtra Chief Minister Devendra Fadnavis on Saturday announced a loan waiver package of Rs 34,000 crore for farmers in the state, reported PTI.

“We are waiving loans of up to Rs 1.5 lakhs completely. And those farmers who have paid back their loans regularly, will give 25% loan return benefit to them,” Fadnavis said while addressing a press conference, reported The Times of India. He said that the loan waiver will benefit 89 lakh farmers, and make 40 lakh debt-free, reported PTI.

Stating that he was aware that the move would be a burden on the state exchequer, Fadnavis announced that all MLAs of the state Assembly would give one month’s salary to support the farm loan waiver.

According to the scheme, at least 31 lakh farmers with overdue loans and another 35 lakh who have not defaulted on their loans but have pending ones in the current fiscal year, will be eligible for a waiver of up to Rs 1 lakh, reported The Times of India. The package will also have a special scheme for farmers who have been regularly paying off their loans.

Farmer organisations and the Opposition Congress had opposed the earlier Rs 1-lakh cap on loan waiver per farmer. On June 11, after 10 days of protests by farmers across the state, the Fadnavis government had announced a full loan waiver.