Co-op dept issues GO on waiving farm loan

Co-op dept issues GO on waiving farm loan

 Following the State Cabinet’s approval for waiving loans of farmers on Thursday, the Co-operation Department issued a government order giving effect to waiving crop loans and interest up to Rs 25,000 availed from agriculture co-operative societies between August 1, 2011 and July 25, 2012.

In case of farmers who have availed loan of more than Rs 25,000, the government will waive Rs 25,000, provided farmers pay the balance amount to the societies. The government will remiburse the loan amount to the societies.
The State government had announced crop loan waivers during the Legislature session last month.

Briefing reporters after the Cabinet meeting, Primary and Secondary Education Minister Vishweshwara Hegde Kageri said that the government loan scheme would help 15 lakh farmers reeling under a severe drought in the State. “The loan waiver will burden the State exchequer by an estimated Rs 3,500 crore,” he said.

The government had come under criticism by the Opposition parties for not clearing the scheme for three weeks after making the announcement in the Legislature.

Nod for other projects

In a series of decisions made with an eye on the Assembly polls next year, the Cabinet has approved several pending projects. In a key decision, administrative clearance has been given for housing projects aimed at helping the economically poor. The project, which will be taken up by the Karnataka Housing Board, will cost Rs 7,888 crore and will include the formation of 1.3 lakh sites and construction of 6,867 houses in 53 places across the State, Kageri said.  

Rural road scheme

The Cabinet also approved the extension of the “Namma grama, Namma raste” rural road scheme. The existing limit of 20 kms of roads will be increased to 50 kms, across 189 Assembly constituencies with rural areas. Kageri said that Rs 2,160 crore has been earmarked for the scheme.

Seed development

With the Cabinet’s clearance of the “own seed development scheme,” steps will be taken to encourage farmers to cultivate seeds depending on their requirements and geographical location. Funds of Rs 50 crore have been earmarked for the scheme.
“Arrangements will be made through seed corporations for the processing and certification of seeds grown by farmers,” Kageri said.

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