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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Fadnavis writes off Rs 48,000 crore

Mumbai: In a clear indication that the Maharashtra government is leaving no stone unturned to keep the state’s agrarian base happy, Chief Minister Devendra Fadnavis has unleashed yet another massive populist measure. Hot on the heels of relaxing the eligibility criteria to ensure a blanket farm loan waiver, the Chief Minister announced a sweeping Rs 48,000 crore waiver on the pending electricity bills of farmers across the state. Addressing a ‘Krutadnyata Sohala’ (gratitude ceremony)...

Fadnavis writes off Rs 48,000 crore

Mumbai: In a clear indication that the Maharashtra government is leaving no stone unturned to keep the state’s agrarian base happy, Chief Minister Devendra Fadnavis has unleashed yet another massive populist measure. Hot on the heels of relaxing the eligibility criteria to ensure a blanket farm loan waiver, the Chief Minister announced a sweeping Rs 48,000 crore waiver on the pending electricity bills of farmers across the state. Addressing a ‘Krutadnyata Sohala’ (gratitude ceremony) organized by the BJP Kisan Morcha at Mumbai’s Yashwantrao Chavan Pratishthan on Wednesday, Fadnavis declared that farmers using agricultural pumps of up to 7.5 horsepower will see their historical electricity dues completely wiped out. The announcement was met with the traditional sounding of the Tutari and thunderous applause from hundreds of farmers who had gathered from every corner of the state. The Chief Minister framed the mega-sop as a necessary step to “wipe the farmers’ slate clean,” enabling them to write a new chapter of prosperity. Calculated Pitch The timing and scale of the announcement underscore a government that is boldly embracing populist economics to solidify its political footprint in rural Maharashtra. While Fadnavis maintained that these decisions were taken purely in the interest of the farmers—pointing out that the original loan waiver was announced when no elections were in sight—the political undertones were unmistakable. Taking a sharp dig at the opposition, the Chief Minister accused rival parties of running “political shops” in the name of farmer agitations without understanding the government’s genuine intent. Asserting his grassroots connection, Fadnavis proudly claimed, “I do not make decisions sitting in my house. I am a farmer myself, a man of the soil.” He openly defended the government’s recent move to strip away the stringent conditions attached to the blanket farm loan waiver, signaling that his administration will not hesitate to clear bureaucratic hurdles if it means putting money directly into the hands of the rural voter. Balancing Sops Even as he rained freebies, the Chief Minister attempted to balance the populist optics with a dose of economic pragmatism. He acknowledged that handing out repeated loan waivers is a symptom of deep-rooted agrarian distress, not a permanent cure. Pointing to the Rs 95,000 crore in aid currently being pumped into the agricultural sector by the state and central governments, Fadnavis outlined his administration’s shift toward an investment-driven agricultural model. He championed the success of schemes like ‘Jalyukt Shivar’ and ‘Magel Tyala Shettale’ (farm ponds on demand), claiming these initiatives have already empowered farmers to harvest multiple crops a year. Addressing the core issue of farming costs, he noted that the government already subsidises power to the tune of Rs 25,000 crore annually. By coupling this with a push for solar pumps and solar agricultural feeders, he promised that 100 percent of the state’s farmers would receive uninterrupted daytime electricity by the end of the year. Infra Dream Looking beyond immediate financial relief, the Chief Minister laid out a grandiose vision to permanently drought-proof Maharashtra’s most vulnerable regions. A staggering Rs 6 lakh crore infrastructure pipeline is being planned to ensure the next generation never witnesses a drought. Fadnavis detailed ambitious river-linking projects, including the Wainganga-Nalganga link, to divert excess floodwaters to parched regions. The state plans to construct 24 new dams and raise the height of 16 existing ones to ensure not a single district in Vidarbha faces water scarcity. Furthermore, massive engineering feats are on the drawing board to divert 200 TMC of floodwater from Western Maharashtra to Marathwada, and lift 275 TMC of wasted water from the Ulhas basin to quench the thirst of North Maharashtra and Marathwada. By marrying immediate, massive debt relief with long-term infrastructure promises, the Fadnavis administration is aggressively cementing its pro-farmer narrative. As the Yashwantrao Chavan auditorium echoed with whistles and cheers, it became highly evident that the government’s strategy of pairing mega populist waivers with big-ticket rural dreams is striking a powerful chord with the state’s agrarian voters.

The power of investing

AI generated image
AI generated image

Bengaluru: Imagine a young professional walking into a coffee shop every morning. He orders a cappuccino for Rs.120. It is a harmless indulgence, repeated almost without thought. Now imagine another young professional who skips that coffee and instead invests Rs.100 every day into an equity mutual fund through a Systematic Investment Plan (SIP).


Twenty-five years later, the difference between the two decisions is transformational. The first professional has consumed thousands of cups of coffee. The second may have quietly built a corpus worth more than a crore of rupees.


Investors often spend enormous amounts of time chasing stock tips, market predictions and the next “multi-bagger” opportunity. Yet history repeatedly demonstrates that wealth is more often created through consistency than brilliance. The most successful investors are not necessarily those who make spectacular bets but those who remain disciplined for decades.


A daily SIP of Rs. 100 may appear insignificant. Many people spend more than that on snacks, online subscriptions or impulse purchases. However, when invested regularly over long periods, even small sums can produce surprising outcomes.


Consider the mathematics. An investor contributing Rs.100 a day for 25 years would invest a total of roughly Rs. 7.5 lakh. Assuming annualised returns of 12 percent, the corpus could grow to about Rs. 42 lakh. At 13 percent, it could approach Rs. 50 lakh. At 14 percent, the amount rises to nearly Rs. 58 lakh, while a 15 percent return could generate around Rs. 68 lakh.


The impact becomes even more striking as the daily contribution increases. A Rs. 200 daily SIP, amounting to a total investment of Rs. 15 lakh over 25 years, could potentially grow to between Rs. 85 lakh and Rs. 1.37 crore depending on returns. A Rs. 500 daily SIP may create wealth of over Rs. 2 crore, while a Rs. 1,000 daily investment could potentially build a corpus ranging from Rs. 4 crore to nearly Rs. 7 crore over the same period.


These estimates assume investments are made on roughly 300 days a year over 25 years. The exact figures may vary, but a modest increase in returns creates a disproportionately large increase in wealth when time is allowed to work its magic. In investing, time is often the most valuable asset. This is why young investors enjoy a tremendous advantage.


When Warren Buffett was once asked about the secret of wealth creation, the answer was not merely intelligence. It was time. A 25-year-old investing Rs.100 daily has something more valuable than capital. He has a 25-year runway. Every year of delay diminishes the power of compounding.


Investment Headstart

Consider two friends. Ravi begins investing at 25, while Priya waits until 35. Both invest similar amounts and earn comparable returns. Yet Ravi’s ten-year head start often results in a substantially larger corpus, even if Priya later invests more aggressively. The lesson is simple. The best time to start investing is not when one becomes wealthy. It is when one begins earning.


Unfortunately, many first-time investors postpone investing because they believe they need large sums of money to begin. That assumption often creates paralysis. A daily SIP changes the psychology of investing. Instead of asking, “Can I invest Rs. 50,000?” the question becomes, “Can I invest Rs.100 today?” The smaller question is far easier to answer.


Behavioural finance has long shown that habits matter. People who begin with manageable amounts are more likely to remain invested through market cycles and periods of volatility. Small SIPs reduce emotional stress because the commitment feels affordable and sustainable. Investors are less likely to panic during market corrections. Over time, confidence grows alongside the corpus, and volatility gradually becomes less intimidating.


This approach can benefit a wide range of people. Young professionals beginning their careers can cultivate financial discipline early. Students earning part-time income can learn the habit of investing before major financial responsibilities arise. Middle-income families can pursue long-term wealth creation without disrupting household budgets, while gig workers and freelancers may find small-ticket investments particularly suited to irregular income streams.


The strategy is equally relevant for parents. A modest SIP started when a child is born can grow substantially over 15 or 20 years and help fund higher education, overseas studies, entrepreneurship or provide a financial head start in adulthood. Grandparents and guardians may also view such investments as a lasting legacy, allowing the power of compounding to become an inheritance in itself. Parents can gradually increase contributions as incomes rise, but the crucial step is often simply to begin. In investing, starting early frequently matters more than starting big. The objective is not merely wealth accumulation but habit formation.


Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.


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