Centre approves Rs 1,044 cr package for Punjab farmers

Giving a relief to Punjab farmers reeling under rural debt, the Centre has approved a package of Rs 1,044 crore, thereby conceding the long-pending demand of the Punjab government.

Punjab Chief Minister Amarinder Singh informed this during his fourth round of Punjab Vikas Yatra.

He said the financial package included a one-time settlement (OTS) of loans of commercial banks on a one-to-one-basis of Rs 500 crore and a co-operative rehabilitation package of Rs 544 crore to settle 800 defunct Punjab Agricultural Co-operative Service Societies in the border areas here.

The rehabilitation package also included Rs 210 crore as compensation to the co-operative banks for OTS benefit extended to agricultural borrowers and interest subsidy on account of reduction of interest on co-operative loans from 9 per cent to 7 per cent.

He further said this financial package would benefit 800,000 agricultural borrowers comprising of 400,000 each who had taken loan from co-operative as well as commercial banks.

He said the Punjab government already implemented OTS scheme of Rs 210 crore to give relief to agriculture borrowers in the co-operative sector. He said the government would soon announce a farmer-friendly scheme to relieve debt-burdened farmers due to the loan raised from the Arhtiyas.

The ministerial committee constituted by the state government to find means to solve the problems of rural indebtedness had already submitted its report, he added. Singh also indicated about the possibility to slash the rate of interest charged by the Arhtiyas on these loans.

Responding to the demand of various trading and industrial Associations regarding "C" form, Singh said the Punjab government had already decided to extend the date for the submission of "C" forms till March 31. It was required to be submitted along with the annual statement under the Punjab VAT Act, 2005.