Crop loan limit raised to Rs 1 lakh

Crop loan limit raised to Rs 1 lakh

 Karnataka farmers can now take agriculture loans up to Rs 1 lakh at the subsidised rate of 3 per cent from commercial banks and Regional Rural Banks (RRB). Earlier the limit was Rs 50,000. This decision was taken by the State Cabinet on Wednesday.

Briefing reporters after the Cabinet meeting, Primary and Secondary Education Minister Vishweshwara Hegde Kageri said the state government has been providing 3 per cent interest subsidy on short-term crop loan up to Rs 50,000 taken from commercial banks and RRBs.

Now, the crop loan limit has been increased to Rs 1 lakh to help farmers reeling under drought. An estimated 2.18 lakh farmers are likely to be benefited by the scheme.

The decision comes close on the heels of loan and interest waiver up to Rs 25,000 for those who had taken farm loans from agriculture cooperative societies during the last one year.

Under an existing State government scheme, farmers can avail interest free agri loans up to Rs 1 lakh from co-operative institutions.

As many as 500 “hire-service centres” will be opened across the State for farmers to hire tractors and other agricultural implement like power tillers and cutters, among others.

“More than 75 per cent farmers in the State are small and marginal and it is difficult for them to purchase farm machines due to their high cost,” Kageri said.
Each centre will come up at a cost of Rs 10 lakh. A sum of Rs 50 crore has been earmarked for the purpose. The services at the centres will be rendered through select registered co-operative societies, the minister said.

Visveswaraya canal  

The Cabinet also approved a plan to modernise the 45.60-km-long Visvesvaraya Canal at a cost of Rs 940 crore over the next three years. The upgrading of the canal, built in 1911 by Krishnaraja Wodeyar IV, then Maharaja of Mysore, will help farmers in Mandya and Mysore districts. The government will release Rs 330 crore for the upgrade in the current year.

The Cabinet approved the proposal by a private firm to desilt the Tungabhadra dam on a trial basis.  The company, Tecpro Infra Project Ltd., will remove silt from the dam on an experimental basis to conduct a sample analysis of contents of soil, sand and mineral particles in the silt accumulated over decades. The company proposes to earn revenue by selling sand and other components from the silt.

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