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Saturday, Sep 30, 2006
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Package for farmers

Gargi Parsai

Cabinet clears Rs.16,978.69 crore for 31 districts in 4 States

NEW DELHI: The Union Cabinet, chaired by Prime Minister Manmohan Singh, on Friday approved a Rs.16,978.69-crore rehabilitation package for farmers in the predominantly suicide-prone districts of Andhra Pradesh, Karnataka, Kerala and Maharashtra.

Of this, Rs.10,579.43 crore will be subsidy-cum-grants, and Rs.6,399.26 crore will be provided as loan.

The package comprises loan rescheduling and interest waiver, and specific schemes for watershed development, seed replacement, horticulture and extension services, and for subsidiary income through livestock, dairying and fisheries.

It also includes an ex gratia of Rs.15.5 crore from the Prime Minister's National Relief Fund to the families of farmers who committed suicide in these States.

Announcing this, Finance Minister P. Chidambaram said the package would be implemented over three years in 31 suicide-prone districts — six each in Vidharbha and Karnataka, 16 in Andhra Pradesh and three in Kerala.

The package includes a loan of Rs. 3,207.81 crore from the Rural Infrastructure Development Fund for 2,565 minor irrigation schemes, Rs. 832.81 crore under the Accelerated Irrigation Benefit Programme (AIBP) for 13 medium irrigation projects, and an aid of Rs. 5,697.48 crore under the AIBP for 12 major irrigation projects.

The package approved for Andhra Pradesh is Rs. 9,650.55 crore and it includes a waiver of interest on loans to the tune of Rs. 1,436.44 crore.

For Karnataka, the package is Rs. 2,689.64 crore, including an interest waiver of Rs. 209.81 crore. The Kerala package of Rs.765.24 crore encompasses an interest waiver of Rs. 360 crore.

The revised Vidharbha package is Rs. 3,873.26 crore and it includes an interest waiver of Rs.712 crore.

The interest waiver would be borne by the Centre and the States in a 50:50 ratio.

Mr. Chidambaram said the Cabinet approved a specific package for Alappuzha and Idukki in Kerala.

The Agriculture Ministry would work it out. .

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