Karnataka enhances cap on farm loans
Close on the heels of waiving loans of farmers up to Rs 25,000, Karnataka Government on Friday enhanced the existing credit limit on farm loans from commercial banks and Regional Rural Banks from Rs 50,000 to Rs 1 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 over 218,000 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 about 7.58 million 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 Visvesvaraya Canal for Rs 940 crore. The canal built in 1911 by the then Mysore King Nalwadi Krishnaraja Wodeyar needs an upgrade and repair and it would help farmers in Mandya and Mysore districts.
Kageri said the cabinet approved purchase of 500 MW power from Gujarat till June 15, 2013 to tide over the energy crisis faced by the state. The power will be purchased at Rs 4.10 per unit and another 60 paise expenditure will be incurred on transportation, he said. The government decided to set up a joint venture firm Karnataka State Coal Mining Company Ltd to bid for coal blocks. Under the revised guidelines framed by the Centre, a Joint Venture firm has to be floated for bidding coal block allotment, he pointed out.
Karnataka Power Corporation, the nodal agency for power generation, and Mysore Minerals Ltd will establish the new firm, he said.
The cabinet also decided to seek a CID probe into allegations of Rs 17.97 crore financial irregularities in awarding contract to land levelling in Bidadi industrial area during 2000-2001, which was pointed out by the Public Accounts Committee, Kageri said. The meeting approved establishment of Karnataka Science and Technology Promotion Society to bring under one umbrella institutions like Nehru Planetarium, and science and technology department wings, he said. The cabinet gave its nod for 10 per cent hike in salaries of workers employed in four state-owned Transport Corporations from January 1, 2012.
The allowances of drivers, conductors and patrol staff would go up by 30 per cent and the new wage agreement will be valid for the next four years. Employees of transport corporations get wage revision once in four years.
The government decided to make e-tendering process mandatory for the works that exceed Rs 5 lakh expenditure henceforth, Kageri said.