The West Bengal government has pegged losses due to drought in 11 out of 18 districts of the state at about Rs 6,500 crore.

Speaking at the state level banking committee (SLBC) meeting here today,

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The state has already allocated Rs 350 crore for the purpose.

Also, the state government has decided to distribute free pump sets cost in areas where water body is available. In addition, subsidy will be given on diesel at the rate of Rs 2 per liter for running the pump sets.

Debt swap and credit enhancement
The state government has decided that farmers indebted to registered private money lenders will be covered under debt swapping scheme, thus brining them under formal credit network.

In the eleven districts affected by drought, total target for disbursement of agriculture loan has been set at Rs 14600 crore.

Out of this, the target for crop loan will be Rs 7932 crore and target for term loan has been set at Rs 6668 crore.

All eligible non-overdue crop loans where crop has been damaged would be converted to mid term loans with a moratorium of one year and fresh production loans will be made available to them.

These production loans may include component of consumption loans wherever necessary, according to a press release by United Bank of India, the SLBC convener for the state.

This apart, non-overdue installments of term loans will be rescheduled and new farmers will be provided with crop loans, equipment loans and loans for activities allied to agriculture as per norms.

Bhaskar Sen, chairman and managing director, UBI said banks to would be implementing the relief measures as per comprehensive RBI guidelines for drought. The drought-hit districts include South 24 Parganas, North 24 Parganas, West Medinipur, Bankura, Purulia, Birbhum, Burdwan, Hooghly, Nadia, Murshidabad and Malda.

Sen also stated that the relief measures would in the form of conversion of short term loans to mid term Loans, rescheduling of installments of non overdue term loans and consumption loans wherever needed.

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