The Hindu : Karnataka / Bangalore News : We are committed to implementing farm loan scheme: Yediyurappa

Online edition of India's National Newspaper
Thursday, Jun 29, 2006

Karnataka

Karnataka - Bangalore

We are committed to implementing farm loan scheme: Yediyurappa

Special Correspondent

Bangalore: Deputy Chief Minister B.S. Yediyurappa on Tuesday said that the Government was committed to the implementation of the farm loan scheme at a subsidised interest rate of four per cent and expected the Union Government to extend its cooperation.

The former Agriculture Minister K. Srinivasa Gowda (Congress) who led the discussion on the demand for grants of the Agriculture Department in the Legislative Assembly earlier sought an explanation from the Government on whether it had fixed a ceiling of Rs. 1 lakh for the farm loan scheme. Under the scheme announced in the budget, farmers were eligible for a loan of up to Rs. 3 lakh at an interest rate of four per cent. The Centre too had announced a similar scheme which carried an interest of seven per cent. While the Central scheme was applicable only for short-term loans obtained by farmers, the State scheme was applicable for both short term and long-term loans.

Intervening during the discussion, the Deputy Chief Minister said it would be appreciated if the members of the two Houses passed a resolution urging the Prime Minister and the Union Finance Minister to direct the nationalised banks in Karnataka to also extend loans at the subsidised rate as extended by the cooperative banks. As such, the scheme announced in the Union budget was itself yet to be implemented.

Despite the announcements of the Union Finance Minister, the Reserve Bank of India was yet to issue the guidelines to all banks. The State scheme was for a loan of up to Rs. 3 lakh and not Rs. 1 lakh as made out by the Opposition.

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Karnataka