22.19 lakh TN farmers benefitted from 'no due certificates

Chennai, Jul 31 (UNI) Tamil Nadu Finance Minister K Anbazhagan told the Assembly today that the state Government had so far issued 'no due' certificates for an amount of Rs 5,416 crore, benefitting 22.19 lakh farmers who had availed loans from cooperative banks.

Replying to the debate on the state budget for the year 2006-2007, he said the certificates would enable farmers to avail fresh loans from other banks.

Assuring the House that the Government would ensure smooth functioning of cooperative banks by making good the loss caused to them due to waiver of farmers' loans, he said the DMK government had provided relief to farmers by waiving loans worth Rs 6,866 crore.

But the previous AIADMK Government provided relief to the ryots, who were hit by natural disasters like tsunami, flood and drought, only to the tune of Rs 403.65 crore by way of waiving interests, he added.

Stating that the Government had taken over the entire debt liability of Rs 1,668 crore owned by cooperative banks to NABARD, he said a provision of Rs 435 crore was made in the budget for this purpose.

A provision of Rs 1,000 crore had also been made in the budget to compensate the Cooperative banks and a sum of Rs 200 crore had already been released, he added.

Mr Anbazhagan said the necessary provision for the balance Rs 5,431 crore along with interest would be made in the coming financial years to ensure that the farmers continued to get crop loans. At the same time, the interests of the depositors in these banks would also be protected, he added.

Stating that crop loans to the tune of Rs 195 crore had been disbursed for cultivation this year, he said the Government had targetted to provide loans worth Rs 1,235 crore as against the previous Government's disbursal of Rs 1,132 crore during 2005-2006.

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