Hyderabad, Sept. 18
The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, has decided that insurance premium for farm sector borewells will be paid by the State Government.
In yet another boon to the farmers in the State, the Government has also said that the failed borewells will be paid compensation. Significantly, the premium already paid by the farmers will be returned.
After a review meeting here on Monday of the Rural Development Department, which is implementing the insurance scheme during the current fiscal, the Chief Minister said that Rs 1,200, which the farmers normally pay towards premium of their borewells, will be paid by the State Government. A failed borewell is also eligible for compensation up to Rs 10,000.
During the 2005-06 permission under the AP Walta Act was accorded to 2,566 borewells. The Department of Rural Development has been nominated as the administrator of this insurance-cum-compensation scheme.