Rehabilitation package for ryots in the offing

By Staff
|
Google Oneindia News

Kozhikode, July 11 (UNI) The Union Government is considering a rehabilitation package for farmers reeling under debt in the wake of crop failure in 31 districts across the country, Minister of State for Finance Pawan Kumar Bansal has said.

However, it is not possible to accept the request for writing off loans/waiver of interests as it would vitiate the recovery climate thereby affectng the financial health of the banks, he said in a letter addressed to Janata Dal (S) Kerala president M P Veerandra Kumar, MP.

The letter, copy of which was was made available to media here today, said the move would also be detrimental to the interests of stakeholders of banks, especially its depositors, whose money is pre-dominantly used for lending purpose.

The minister, however, said, in cases where the situation has gone beyond the control of the borrowers and have impaired their repaying capacity, the government would consider providing such relief by making suitable budgetary provisions.

Besides, the government has put in place a scheme where farmers will be provied short term loans upto Rs 3 lakh at 7 per cent interest beginning Kharif seasons 2006, he added.

UNI PCH DK1818

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