Karnataka   

More farmers come under loan waiver scheme

Karnataka Bureau

13.6 lakh Karnataka farmers will benefit from the new scheme

BANGALORE: Karnataka Deputy Chief Minister and Finance Minister B.S. Yediyurappa who announced a cooperative farm loan waiver scheme in the budget went a step further on Thursday by extending it to a larger number of farmers, weavers and fishermen, which should cost the exchequer an additional Rs. 450 crore.

Much to the surprise of both the Opposition and even the Ministers and legislators on the ruling side, Mr. Yediyurappa made a suo motu statement in the Legislative Assembly on the enhanced waiver scheme.

In the budget, the scheme was applicable only to farmers who have obtained short-term crop loans amounting up to Rs. 25,000, after April 1, 2006.

Of the loans amounting up to Rs. 50,000 obtained by the farmers, the first part (Rs. 25,000) will be waived, and the remaining eligible for a waiver of interest provided the principal amount (balance of Rs. 25,000) was paid before March 31.

The Congress legislators staged a walkout demanding that the all the loan dues of farmers should be waived, while the leaders of political parties such as Vatal Nagaraj (Vatal Paksha) and G.V. Srirama Reddy (CPI-M) staged a dharna in the well of the House demanding that the loan waiver should have a cap of Rs. 1 lakh.

Mr. Yediyurappa said that 13,63,850 farmers would become the beneficiaries under the extended scheme. Under the scheme announced in the budget, the burden on the Government was estimated to be Rs. 1,505 crore. It will be Rs. 1,950 crore under the extended scheme.

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