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Poornima Mohandas

Aurangabad , Dec. 14

THE Finance Minister, Mr Jaswant Singh, on Sunday said a comprehensive debt swap package for States to reduce their interest burden in addition to the present one will be announced soon. He also said interest rates on crop loans should be brought below 9 per cent.

Mr Jaswant Singh said, "We are working on a comprehensive debt swap plan which will be implemented in a phased manner. The intention is to bring down the States' debt to half i.e., Rs 44,000 crore." He, however, did not elaborate on the details of the new package.

Last year, the State Government's debt swap scheme for repaying high-cost loans availed of from the Union Government was initiated by way of an additional market borrowing programme and utilisation of a portion of small savings collections.

The Finance Minister today arrived in Aurangabad to inaugurate the third MahaExpo 2003, an industrial trade exhibition organised by the Chamber of Marathwada Industries and Agriculture to promote the region as an investment destination.

On interest rates on crop loans, Mr Singh said that crop loans should be made available below 9 per cent. A few months ago, the Government had announced that the ceiling rate for crop loans extended by banks should be at 9 per cent. Said the Minister, "Why is it that banks are more than happy to finance cars but when it comes to tractor loans, everybody is apprehensive?''

On a more optimistic note, he said, "There should be a second green revolution in India. India has the largest irrigated land mass in the world and we were net exporters of grain even last year, the year of the worst drought in several years.''

On insurance of crops he said, "Agricultural insurance should be comprehensive. Work is on with the Agricultural Ministry to carry this out on a pilot basis and can be extended extensively across the country going forward.''

Responding to demands for insurance coverage and a support price for paddy made by the Maharashtra Chief Minister, Mr Sushil Kumar Shinde, who was also present at the function, Mr Singh said that, "Agricultural insurance is necessary for soyabean and potato crop in addition to the other crops. As far as support price for paddy is concerned, the State Government can go ahead and provide it like they do for cotton.''

He urged Maharashtra to develop more ports citing that the two ports of Mumbai and Nava Sheva were not adequate to contain the growing requirements.

Referring to Gujarat and Maharashtra as the industrial dynamos of India, he urged the two neighbours to work together.

The MahaExpo 2003 will see 30 international consulates among others visiting the week-long exhibition and seminars and is expected to attract foreign direct investment of over Rs 2,000 crore.

The previous exhibition is seen responsible for multinationals such as Czech carmaker, Skoda, and Swiss industrial house, Endress+Hauser, having set up facilities in Aurangabad.

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