Drought-hit Karnataka waives interest on farm loansAugust 23rd, 2012 - 8:22 pm ICT by IANS
Bangalore, Aug 23 (IANS) The Karnataka government Thursday waived interest on farm loans availed from state cooperatives by around 1.5 million farmers reeling under severe drought across the state.
“The waiver, which will cost the exchequer Rs.3,500 crore, will benefit the farmers to cope with the drought situation across the state arising out of deficit rainfall during this monsoon season,” state Education Minister V.H. Kageri told reporters after a cabinet meeting here.
Bowing to pressure from lawmakers of the ruling Bharatiya Janata Party (BJP) and opposition parties and farmers’ organsations, Chief Minister Jagadish Shettar had announced in the assembly in July that the government would be waiving interest and rescheduling loan repayments in light of the drought gripping south, central and northern parts of the state.
“The state government has written to the central government to share the burden of interest waiver to the farmers in view of the grim situation in the agriculture sector as rainfall has been below normal for the second consecutive year,” Kageri said.
Leader of Opposition Siddaramaiah of the Congress criticised the state government Wednesday for not issuing the waiver order despite the chief minister announcing it on the floor of the house.
The cabinet also approved the rural roads development programme in 189 assembly segments across the state at a cost of Rs.2,160 crore.
“The government will develop 50 km of rural roads in each of the 189 constituencies,” Kageri said.
The government also decided to construct 6,867 houses for the economically weaker sections and distribute 130,471 housing sites by the state-run Karnataka Housing Board (KHB) at a cost of Rs.7,888 crore.
The government has decided to allow Udupi Power Corporation Ltd (UPCL) to import 1.5 million tonnes coal for its 600 MW second unit thermal power plant in Udupi district in the coastal region.
“The cabinet decision allows the firm to import coal with higher ash content of up to 12 per cent as against 4.75 per cent earlier,” Kageri said.
- Karnataka to fund three rail projects - Jul 06, 2012
- Karnataka to buy 1,000MW daily to meet demand - Jan 13, 2012
- Cabinet releases Rs.10,091 crore for crop loan subsidies - Sep 06, 2012
- Jharkhand offers Rs.410 crore relief package to farmers - Jul 30, 2012
- Centre seeks revised drought report from Karnataka - Aug 02, 2012
- Karnataka draws action plan for drought-hit (Second Lead) - Aug 15, 2012
- Help Orissa's drought hit, urges Congress - Aug 29, 2011
- Tamil Nadu announces loan waiver, welfare measures - Jan 06, 2010
- Nabard estimates Rs.41,085 crore credit flow in Karnataka - Dec 21, 2010
- Haryana seeks Rs.4,050 crore from centre for drought relief - Aug 10, 2012
- Drought hit areas to get over Rs.800 crore: Pawar - Sep 12, 2012
- States declare drought, not centre: Pawar - Aug 01, 2012
- Controversial Madhya Pradesh minister puts foot in mouth - Mar 21, 2012
- Karnataka to give interest-free loans to farmers - Mar 21, 2012
- Home loans up to Rs.15 lakh get 1 percent cheaper - Jul 04, 2012
Tags: agriculture sector, cabinet decision, cabinet meeting, coastal region, crore, drought situation, education minister, farm loans, housing board, interest waiver, karnataka government, khb, leader of opposition, loan repayments, monsoon season, opposition parties, rural roads, second consecutive year, state cooperatives, thermal power plant