Addressing a press conference here on Saturday, he said to start with the policy would be implemented in Kodagu, Hassan and Chikmaglur districts. The Centre has already announced waiver of 50 per cent of loans raised by the coffee growers and the rest 50 per cent loan repayment being impossible for them to repay, the State government has come up with the new policy.

Under the policy, after Central waiver of 50 per cent, State government would waive off another 25 per cent and rest 25 per cent loans would be waived off by various district central cooperative banks. An amount of Rs 30 crore has been earmarked for the purpose by the State, Mr Savadi said.

Replying to a question, the minister said those affected due to Hippargi irrigation project would be paid a compensation of Rs 60 crore in the first phase and distribution of compensation would commence soon.

The minister said as per the new system, for house loss, 50 per cent compensation amount would be added to the basic value of the houses bearing Gram Panchayat numbers in the first phase and rest in the second and third phase. An office of special DC and superintending engineer would be set up at taluk headquarters to help pay compensation to the affected at the earliest.