Modi seeks reduction in farm loan interest rate in budget

Patna, Feb 27 (PTI) The NDA government in Bihar todayproposed to Finance Minister Pranab Mukherjee in its wish listfrom the Union Budget for 2011-12 to reduce farm loan interestto three per cent.

The Centre should reduce the farm loan from thepresent five per cent to three per cent and the same rateshould be made applicable for purchase of farm equipment likepower trailers and tractors, the Deputy Chief Minister SushilKumar Modi said in statement.

"It''s travesty of the justice that the farmers wererequired to pay 12.5 per cent interest loan for purchase oftractors even as the banks charged only eight per centinterest on loans for purchase of luxury vehicles," hesaid.

Modi, who is also Bihar''s Finance Minister, asked theCentre for Rs 1000 crores towards incentives to the stateshaving potential to lead the second green revolution asagainst Rs 400 crores last year.

He also demanded loan waiver for the weavers.

In another Bihar-specific demand, the deputy chiefminister asked the Centre to grant a special package to thestate on the lines of the same granted to Bundelkhand regionkeeping in view continuous drought and flood affecting thestate for the past four years and also sought release ofremainder of the money to the state under disaster managementfund.

The Centre should also propose enactment of the rightto House Act for the people below the poverty line (BPL), hesaid.