Uttar Pradesh Chief Minister Yogi Adityanath on Tuesday announced loan waiver of up to Rs 1 lakh, which would benefit farmers in the state.
The decision was taken at the first Cabinet meeting of the newly formed Uttar Pradesh government.
The move will cost around Rs 30,729 crore to the exchequer.
Uttar Pradesh has close to 2.3 crore small and marginal farmers who owe about Rs 62,000 crore to banks and cooperatives.
Ban on slaughter houses
Meanwhile, the state government also decided to impose a ban on electronic slaughter houses in the state.
Yogi Adityanath's decision is in line with the BJP's vision document 'Sankalp Patra' released ahead of the Assembly elections. In its document, the Party had promised a complete shutdown of illegal slaughter houses in UP. It is India's largest meat processing state.
Yogi Adityanath had announced a slew of measures after taking over as chief minister on March 19. He has aggressively pushed policies that are an extension of Modi's nationwide agenda, including ban on beef and shutdown of illegal slaughter houses.
He also asked his ministers to declare their incomes and assets as part of a crackdown on corruption.
He also ordered the formation of the controversial 'Romeo-squads' to stop eve teasing and sexual harassment. But there have been criticisms of the decision to create 'Rome squads' saying it amounts to moral policing.