The Hindu : Karnataka News : ‘Vidarbha Package has failed miserably’

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Friday, Jan 04, 2008
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Karnataka

Karnataka

‘Vidarbha Package has failed miserably’

Staff Correspondent

‘There are no stringent norms to ensure implementation of the package’

‘Most nationalised banks are not extending loans to farmers’
‘The banks are not rescheduling loan terms in accordance with the package’

Chitradurga: The most sought-after Vidarbha Package has failed miserably to meet its purpose owing to the “anti-farmer attitude” of nationalised banks and lack of concern for farmers on part of district administration, according to president of Karnataka Kisan Sangharsh Samiti G.S. Madhukumar.

Addressing presspersons here on Thursday, he said that realising the dismal status of farmers, who were committing suicide in various parts of the State, the Prime Minister had announced a relief and rehabilitation package for six districts of Karnataka in 2006.

The package includes guidelines that were framed to write off interest on loans borrowed by the farmers from the nationalised banks, providing more loans and “rescheduling” the existing loans by converting short-term loans into long-term loans. For the identified six districts -- Belgaum, Hassan, Chitradurga, Chikmagalur, Kodagu and Shimoga -- the fresh credit flow figure for the year 2006-07 was estimated at a Rs. 3,217 crore.

But, most of the nationalised banks were not extending loans to farmers owing to lack of stringent norms in ensuring the proper implementation of the package. They were also not ready to convert the short-term loans into long-term, he said.

Dr. Madhukumar said that, the samiti, with great efforts through the Right to Information Act, tried to collect the details of farmers, who had received the benefits, as the banks were not ready to share the information.

G. B. Prakash, a farmer who has obtained a loan of Rs. 3 lakh from the State Bank of India for cultivation of sapota, said that he had lost substantial amount of crop owing to inadequate rain. “Though the bank waived the interest to the tune of Rs. 1.15 lakh, is not ready to convert the loan into long-term and give more loan,” he said.

Show-cause

Showing a copy of the letter received from Karnataka Right to Information Commission, Dr. Madhukumar said that the commission had served a show-cause notice to the district administration seeking a clarification for not providing the required details to the samiti.

He urged the Government to take strict action against the banks in adhering to the norms of the package to ensure that it reached to the beneficiaries.

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