Reimburse Rs 2300 cr loan waived:Yediyurappa

Bangalore, May 4: Karnataka Deputy Chief Minister B S Yediyurappa today urged the Union Government to come to the rescue of the State government by reimbursing Rs 2,300 crore additional burden due to waiver of farm loan and Four per cent interest rate extended to the farming community.

Mr Yediyurappa said that to free the farmers from the clutches of money lenders, the state government took historic decision to waive-off portion of loan availed form the cooperative institutions.

"The Centre and the Reserve Bank of India (RBI) should come forward to bear the additional burden which has fallen on the State Government", he added.

He was speaking to newsmen here after addressing a Two-day Seminar on "11th Five Year Plan of Karnataka-Perspective" jointly organised by the Karnatakna State Planning Board and Institute for Social and Economic Change.

He said that he would prefer lead an all-party delegation to New Delhi and meet both Prime Minister Manmohan Singh and Union Finance Minister P Chidambaram in this regard.

Mr Yediyurappa, who also holds Finance portfolio, also urged the Union Government to follow the State suit and bring down the interest rate to four per cent for the farm loans availed by farmers from Commercial Banks. "This would help in improving the Gross Domestic Product growth in Agriculture", he added.

Earlier delivering his address at the Seminar, Mr Yediyurappa said that the State Government has taken measures to ensure growth during the 11th Plan and improve the living condition of weaker and neglected sections of the society.

He said that the visible regional disparity was major concern in the development of the State in which over 114 taluks have been identified as the most backward by the High Power Committee on Redressal of regional imbalances under the Chairmanship of Dr D M Nanjundappa. The JD(S)-BJP coalition government has decided to tackle the regional disparity and has provided a sum of Rs 1571 crores during 2007-08 on the basis of a Special Development Plan.

Mr Yediyurappa said that the plan outlay proposed in 11th Plan for Karnataka was of the order of Rs 96,700 crores, an increase of 122 per cent over the 10th plan outlay. The State has emerged as a major centre of I.T and High-tech industry and the government has taken measures to spread these activities evenly both at Urban and rural places and provide job opportunities to all.

Recognizing the importance of garment sector, the state government has plans to announce 'Garment Policy' and provide necessary funds during the 11th five year plan. The state government has also decided to develop a permanent 'Trade Fair Park' near the International Airport in Bangalore, he added.

UNI