Centre waives interest on overdue farm loans in Vidarbha

New Delhi, July 27 (UNI) The Cabinet today decided to waive interest amounting to Rs 712 crore on overdue farm loans as on July 1, 2006, in the six affected districts in the Vidarbha region of Maharashtra.

The decision would enable the farmers to immediately take fresh loans from the banking system, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after the Cabinet meeting, chaired by Prime Minister Manmohan Singh.

The overdue loans of the farmers as on July 1 would be rescheduled over a period of three-five years with a one-year moratorium.

An additional credit flow of Rs 1,275 crore would be ensured in these six districts in 2006-07.

The burden of waiver of overdue interest would be shared equally by the state and the Centre. On July 1, 2006, the Prime Minister himself paid a visit to some of these areas where he had direct interactions with the farmers of the region.

UNI SN RP RAI2204