The government's decision to waive farm loans to the tune of Rs60,000 crore for some 40 million poor farmers was a "historic and revolutionary step," said Sonia Gandhi, president of the Congress party which leads the ruling UPA alliance at the centre.

Presenting the 2008-09 budget, finance minister P Chidambaram had proposed a complete waiver of loans due from farmers with holdings up to two hectares in an effort to boost the agricultural sector ahead of the general elections due in May 2009.

Sonia patted Chidamabaram and termed the waiver of farmer loans a "revolutionary step".

"Today is a very happy occasion. The waiver of loans on farmers by the UPA government is a revolutionary step," she said, addressing a large gathering of farmers at her 10 Janpath residence after the budget announcement.

"I congratulate the UPA government and finance minister P Chidambaram for it," she said.

Farmers burst into celebrations outside the residence of the Congress president, smearing colour at each other and singing and dancing to the tune of drum beats.

Congress leaders too joined the celebratiosn amidst a beeline of supporters to express gratitude to the party leadership for the loan waiver.

The Congress party, meanwhile, decided to hold a public meeting addressed by AICC president Sonia Gandhi in Secunderabad on March 14 with a 'path-breaking rally.' In support of the Rajasekhara Reddy government.

The public meeting proposed at Parade Grounds in Secunderabad will mark the culmination of the whirlwind tour of Ms Gandhi to five districts to inaugurate Pushkar lift irrigation scheme, aerial survey of Polavaram project, inspection of Devadula project, besides opening the Rajiv Gandhi International Airport at Shamshabad.

The Congress plans to mobilise at least 10 lakh people from the Telangana region for the event.