Coming to the aid of farmers whose crops have been damaged by the recent unseasonal rains, Prime Minister Narendra Modi today promised higher compensation to them, while directing banks to restructure their loans.
He also instructed insurance companies to expeditiously settle the claims of the distressed farmers.
Speaking at the launch of the Pradhan Mantri MUDRA Yojana here, Modi said the government has decided to increase the quantum of compensation to affected farmers by 50 per cent over the existing level and also relaxed the norms for availing assistance.
The decision to provide liberal assistance to farmers was taken by Modi after a review meeting with Cabinet Ministers who were asked to assess the damage to the crops following the unseasonal rains and hailstorms in northern and central parts of the country.
The Prime Minister said that he has also asked banks to restructure loans of the affected farmers and instructed insurance companies to pro-actively settle their claims.
Besides, the criteria of 50 per cent crop damage for providing compensation to farmers has been reduced to 33 per cent which will help more people get better compensation for the crop loss.
"Second important decision we have taken is to raise the parameters for helping him (farmers). The amount of compensation has been increased to 1.5 times. If earlier, he was getting Rs 100 as compensation, now he will get Rs 150, if it was Rs 1 lakh, he will get Rs 1.5 lakh...A 50 per cent increase," Modi said.
Later, Reserve Bank Governor Raghuram Rajan told reporters that he has directed banks to restructure loans of the farmers in distress.