The Hindu Business Line : Kerala Budget: Farm resurgence fund on the anvil

THE State Government proposes to set up an Agricultural Resurgence Fund with the aim of helping projects that seek to raise productivity through adoption of modern technology, including in the plantation sector.

The Finance Minister, Mr Vakkom Purushothaman, announced this while presenting the State Budget for 2006-07. He set apart Rs 50 crore in subsidy from this fund for replanting cardamom and pepper plantations with hybrid varieties.

Agricultural pension of Rs 1,000 per year will be given in half-yearly instalments to the aged head of the family of farmers with meagre holdings and no other means of livelihood; Rs 10 crore has been set apart for the scheme and Rs 18 crore for expansion of paddy cultivation.

The Government managed to provide more than 207 days of employment during the current year in the cashew sector. This will be raised to 300 days during the next year. The fisheries sector was a major beneficiary with Rs 61.36 crore.

Disbursement of agricultural loan through the cooperative sector will be doubled. New societies will be started exclusively for channelling these loans. Steps will be taken to provide loans up to Rs 25 lakh to agriculturists for purchase of land for agricultural purpose by mortgaging the land so purchased.

T&D losses down: In the power sector, the Finance Minister hoped for a capacity addition of 128.75 MW and energy addition of 313.25 MU during the next year. Transmission and distribution losses have been brought down to 24.84 per cent. The target is to bring this further down to 23.15 per cent.

The Vizhinjam Deep Water International Transhipment Container Terminal has assured itself of a berthing in the budgetary planning process with an initial allocation. The Vizhinjam International Sea Port Ltd, a company established for the phased implementation of the multi-crore project, has been given Rs 10 crore.

Fishing harbours: Development plan for a string of fishing harbours also find a mention in the budget. Inland waterways, with an allocation of Rs 58.85 crore, get a major share of funds.

Year 2006-07 is being declared as the `Year of Medical Tourism.' Specified tourism products sporting theme tags such as `monsoon', `pilgrim', `adventure' and `farm' will be developed and promoted.

The budget provided Rs 70.84 crore for the sustenance of the Kudumbasree-Asraya poverty alleviation and rural uplift programme. Recommendations of the third Finance Commission will be implemented for strengthening the local self-government bodies.

Kerala will be the first State to do the bidding of the Finance Commission in this manner, the Finance Minister claimed. Allocations to the local bodies will be Rs 2,050 core, a scale no other State has made bold to commit itself to, he added.

Other major heads of allocations are - National Urban Renewal Mission (Rs 90 crore); State's share for major national poverty eradication and job generation schemes (Rs 44.94 crore); Mythri housing scheme for the poor (Rs 43 crore) and laboratory facilities for schools (Rs 25 crore).