The Hindu Business Line : Maharashtra to bear interest on farm loans

THE Maharashtra Government decided on Tuesday to bear the interest on agricultural loans borrowed by the small and marginal farmers in the State for the current kharif and previous rabi seasons.

The Chief Minister, Mr Sushilkumar Shinde, who briefed newspersons after the Cabinet meeting said that the step would benefit 30 lakh farmers and cost the State Exchequer Rs 211 crore.

Mr Shinde said that these loans amounted to Rs 1,627 crore. Of these, 70 per cent loans were borrowed from cooperative banks and 30 per cent from nationalised banks. The State Government would pay Rs 151 crore to the cooperative banks and Rs 60 crore to the public sector banks for the interest.

The State Government has already decided to provide from July 1 free electricity to all farmers for running their water pumps by paying the Maharashtra Electricity Board about Rs 1,200 crore a year.

While the ecologists and economists have questioned the wisdom of supplying free power, the Maharashtra Electricity Regulatory Commission is considering the whole issue.

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