The Licensed Cultivators Act (LCA), 2011, was introduced based on the Koneru Ranga Rao Committee’s recommendations to further liberalize tenancy laws. The act defined a “Licensed Cultivator” as someone who cultivates another’s land with permission, either through rent or other agreements, without affecting the ownership rights of the landowner.
Licensed cultivators were eligible for loans and issued a Loan Eligibility Card (LEC) by revenue officers. The LEC was valid only for the lease period, ensuring that the licensed cultivator could access credit without claiming ownership of the land. The act initially saw success, with a significant number of tenants becoming licensed cultivators and accessing bank credit.
However, the political will to sustain this program waned, and by 2014, no new LECs were issued in Telangana, reflecting the challenges in maintaining momentum for such reforms.
