The Hindu Business Line : Maharashtra: Rehab package for businessmen, farmers

THE Maharashtra Government, along with the State Level Bankers Committee (SLBC), on Wednesday announced a financial package for the rehabilitation of the flood-affected businessmen and farmers in the State.

The package was announced after an emergency meeting of the SLBC and State Government.

The meeting was chaired by the Chief Minister, Mr Vilasrao Deshmukh.

Addressing the media, Mr S.C. Basu, Chairman, SLBC, and Bank of Maharashtra, said loans taken by the small and marginal farmers have been rescheduled to medium-term loans. Loans up to Rs 50,000 in urban areas and Rs 25,000 in rural areas will have zero per cent interest rate. There will be a two-year moratorium on loan repayment. After the end of moratorium, another five years would be given for repayment, he said.

Mr Basu also announced that for loans above Rs 50,000, the interest rate has been reduced from nine per cent to seven per cent. The investment credit in rural areas would also be reassessed in the next 30 days. For insurance claims, only minimum paper work would be needed and the `Panchanama' carried out by Revenue Department officials would be sufficient for settling the claims.

"For the settlement of the claims, cue would be taken from procedures followed after the Gujarat earthquake and the 2004 tsunami. The claims would be settled immediately," Mr Basu said.

The package has been designed for the benefit of the small and marginal farmers as more than four lakh hectares of agricultural land has been damaged by the floods. Nabard would make additional loans available for regional banks, Mr Deshmukh he said.

Speaking on the sidelines of the meeting, Mr Ashok Dugade, Executive Director, Bank of Maharashtra, said that banks headquartered in Mumbai would be meeting on August 12 to discuss package for housing loans.

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