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Centre re-introduced UPA Govt.'s interest subvention scheme 'out of fear': Congress

ANI  |  New Delhi [India] 

After the Union Cabinet slashed the on farmers' loans and cleared the interest subvention scheme, the on Thursday called on the Centre to stop fooling the farmers and have a 'reality check' instead.

The further said that Centre took this decision out of fear following the Mandsaur firing, where six farmers lost their lives during an agitation.

"The should stop befooling people and the farmers. They are not providing any extra relief. The interest subvention scheme was introduced by in 2007-08 which was discontinued by the in 2017-18 by way of concerted conspiracy. After the Mandsaur firing the got scared and has now continued this scheme. They are trying to get false credit," leader Randeep Singh Surjewala told ANI.

Surjewala further demanded Prime Minister Modi's apology for not continuing the scheme.

Another Congress leader Mallikarjun Kharge said, that reducing the would not be helpful the farmers.

"Reducing the would not benefit farmers. If the government wants to give respite to the farmers who are committing suicide then they have to waive off the farmers' loan. If they really want to help farmers then they should waive off their loans as government did," Kahrege told ANI.

The Union Cabinet slashed on farmers' loans by as much as 4 per cent. Earlier the rate of interest was 9 percent which has now been reduced to 5 percent on loan up to Rs 3 lakh limit.

The Centre also cleared the interest subvention scheme for farmers.

The Cabinet also decided that crop loans of up to Rs 3 lakh will be made available to the prompt payee farmers at 4 percent only.

It also approved the total expenditure of Rs 20,339 crore in the current financial year as Interest subsidy on short-term crop loans.

The Cabinet decision came at a time when the farmers in various parts of India are protesting to get their farm loans waived.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 15 2017. 07:10 IST