The government on Friday brought large farmers in the ambit of its farm loan waiver scheme by expanding the package by nearly 20 per cent to Rs 71,680 crore (Rs 716.80 billion) a demand strongly voiced by Congress leader Rahul Gandhi.

Under the modified scheme, all farmers, including big ones, in 237 identified districts will get a debt relief of 25 per cent of the outstanding amount or Rs 20,000, whichever is higher, Finance Minister P Chidambaram said after a meeting of the Cabinet, which approved the guidelines.

There will be complete loan waiver for small and marginal farmers, whether they are in identified districts or other areas, he added.

The scheme, which will benefit over four crore small and marginal and other large farmers, will cost the exchequer a total of Rs 71,680 crore as per unaudited estimates as against the original estimate of Rs 60,000 crore (Rs 600 billion), Chidambaram said.

"Small and marginal farmers will get full debt waiver while 60-65 per cent of large farmers also get full debt waiver. This is why the cost of the scheme has increased," he said.

While participating in the Budget discussion, Congress general secretary Rahul Gandhi had urged the government to widen the ambit of the scheme to cover farmers with larger acreage in dryland areas.

The debt waiver and relief scheme will be implemented by the end of the next month, Chidambaram said, adding that instructions would be issued to all bank branches to prepare a list of beneficiary farmers for display at their respective premises.

Budget 2008: Complete coverage