Two days after taking oath, Rajasthan chief minister Ashok Gehlot Wednesday announced waiver of short-term loans taken by farmers from cooperative banks and loans of up to Rs 2 lakh from other banks.

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The waiver would cost Rs 18,000 crore to the state government. The Congress which won the recent assembly elections had promised in its manifesto to waive farm loans. Congress president Rahul Gandhi had said this would be done within 10 days of the pary coming to power in the state.

Ashok Gehlot told reporters the scheme will apply to farmers in debt till November 30.