In the backdrop of the COVID-19 pandemic, Kerala Chief Minister Pinarayi Vijayan on Friday requested the National Bank for Agriculture and Rural Development (NABARD) to allow a special revival package to help the states, including Kerala.
He wrote a letter to NABARD Chairman Dr Harsh Kumar Bhanwala in this regard.
"Most states, including Kerala are facing an unprecedented crisis as a result of the COVID-19 pandemic. It is well known that pandemic will have devastating economic effect. I request that urgent proactive steps be taken by NABARD to help the states, including Kerala by means of special revival package in view of coronavirus," Vijayan wrote in the letter.
"As part of the pandemic special revival package, the interest rate of refinancing of loans for short term agricultural operations of NABARD to state Co-operative Banks, Regional Rural Banks and Commercial Banks, which is extended to crop credit, may be reduced to 2% from the existing 4.5 % year," the letter added.
CM Vijayan also requested 'a special line of credit of Rs 2,000 crore' for the state.
"The interest rate of loans given to small scale businesses should be reduced from 8.4%to 5%. We request a special line of credit of Rs 2000 crore under Rural Infrastructure Development Fund (RIDF) for Kerala state at 2% instead of the usual 3.9 %," CM wrote in the letter.
This comes a day after the Kerala government has announced a package of Rs 20,000 crore to tide over the present crisis.
A total of 26 people including 2 foreigners have tested positive for coronavirus in Kerala.
The total number of COVID-19 cases in India has now climbed up to 223, including 32 foreigners, the Union Health Ministry said on Friday. As many as 23 people have been cured of the infection in India.
The disease has claimed over 10,000 lives globally.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)