Close on the heels of waiving loans of farmers up to Rs 25,000, Karnataka Government today enhanced the existing credit limit on farm loans from commercial banks and Regional Rural Banks from Rs 50,000 to Rs one lakh to help the farming community hit by severe drought.
The state cabinet chaired by Chief Minister Jagadish Shettar decided to hike the credit limit for the loans being extended at three per cent interest rate.
“This decision would benefit 2.18 lakh farmers who avail loans from commercial banks and RRBs”, Minister for Primary and Secondary Education Vishveshwara Hegde Kageri told reporters here.
Continuing its pro-farmer initiative, the Cabinet also decided to establish 500 service centres across the state to provide agricultural implements like tractors, tillers on rental basis to small and marginal agriculturists to promote mechanisation in agriculture.
Agricultural implements including harvesting and post harvesting gadgets would be made available at these centres which would be established at a cost of Rs 10 lakh each, Kageri said.
The state has 75.85 lakh small and marginal farmers, he said adding that the government will spend Rs 33 crore on this scheme, which would be managed by Agricultural Credit Cooperative Societies.
Kageri said the cabinet approved modernisation of 45.60 km stretch of Visveswarayya Canal with Rs 940 crore expenditure.
The canal built in 1911 by the then Mysore King Nalwadi Krishnaraja Wodeyar needs upgradation and repair and it would help farmers in Mandya and Mysore districts.