Immediately after taking over as the new Chief Minister of Madhya Pradesh, Kamal Nath on Monday waived loans of farmers to the tune of Rs 2 lakh each, delivering on the Congress pre-poll promise of cancelling farm loans within 10 days of coming to power.

"The Madhya Pradesh government hereby takes the decision of waiving of loans taken by farmers up to Rs 2 lakh from nationalised and cooperative banks," read the letter signed by Rajesh Rajora, Principal Secretary, Department of Agriculture, Horticulture and Food Processing.

Kamal Nath, who was instrumental in the Congress' victory in Madhya Pradesh, was on the day sworn in as its 18th Chief Minister, bringing to an end 15-year Bharatiya Janata Party (BJP) rule in the central state. 

Riding on its promise of farm loan waiver, the Congress won 114 seats, two seats short of majority in the 230-member House. 
-IANS