The Hindu : Front Page : One-time settlement for farmers with over 2 hectares

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Saturday, May 24, 2008
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One-time settlement for farmers with over 2 hectares

Ashok Dasgupta

NEW DELHI: Under the guidelines of the revised farm loan waiver scheme, small farmers will include those with a holding of up to one hectare (2.5 acres), while marginal farmers will be those who have one-two hectares.

Farmers with more than two hectares will get a one-time settlement rebate of 25 per cent, subject to their paying the balance in three instalments by June 30, 2009. However, no interest will be charged on the outstanding amount.

Rs.20,000 benefit

Briefing journalists on the Cabinet decision here on Friday, Finance Minister P. Chidambaram said that in the 237 identified dry land districts, large farmers would get a benefit of Rs. 20,000 or 25 per cent of the outstanding amount.

These districts were identified on the basis of government schemes such as the drought-prone area programme (DPAP), the desert development programme (DPP) and the Prime Minister’s Special Relief Programme.

List to be prepared

Under the guidelines, to be issued to all lending institutions, including banks, rural regional banks, cooperative credit institutions and local area banks soon, each branch would have to prepare a list of farmers along with particulars of loan waiver to enable them to claim the benefit without any problem.

Details of waiver

The farmers would not be required to submit any document but they would receive a certificate from the bank with details of waiver.

The farm loan waiver scheme would also include related activities such as poultry, dairy farming, fisheries and bee-keeping as also purchase of tractors and other agricultural equipment.

To monitor scheme

Mr. Chidambaram said a high-level body would monitor implementation of the scheme at the national level. Headed by the Secretary, Department of Financial Services, it would include the Agriculture Secretary, the RBI Deputy Governor, the NABARD Chairman, and the chairmen of two public sector banks.

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