Hyderabad, Jan 19 (Agencies): The Andhra Pradesh Government will soon enact a legislation that will ensure "legal security" to tenant farmers as well as safeguard the rights of the land owners.

"It will be a full protective legislation that will take care of the interests of both the land owners as well as the tenant farmers, who hitherto did not enjoy any specific rights or benefits under the existing laws," state Revenue Minister N Raghuveera Reddy said on Tuesday.

Talking to mediapersons at the end of an all-party meeting in the state Secretariat, Raghuveera said a second draft of the proposed legislation was being prepared in consultation with the Revenue, Finance, Law, Co-operation Departments and the State-Level Bankers' Committee.

The draft legislation would be put up for public discussion upto the mandal level to elicit necessary feedback from all stakeholders.

"We will enact the legislation in the Budget session of state Legislature next month," the Minister added.

"Tenant farmers were deprived of loans from regular financial institutions or insurance and other compensation payment in case of any loss.

With the efforts of the State Government, banks extended loans to 15,000 tenant farmers in 2005 and the number rose to 1.5 lakh in 2009-10. In 2010-11, however, only one lakh tenant farmers could get loans from banks and other financial institutions in the State," he noted.

Banks were wary of extending loans since both the land owner and the tenant farmers were availing of the facility in many instances. To overcome this problem, the State Government has decided to issue loan eligibility cards to tenant farmers this year, Raghuveera said.

All political parties unanimously supported the government's initiative to enact legislation to safeguard the interests of tenant farmers, he added.