The Uttar Pradesh government has decided to tie up with the Life Insurance Corporation (LIC) to offer an annuity to farmers whose land is to be acquired.
The annuity is in keeping with the relief and rehabilitation package the Mayawati government had announced.
Under the plan, Rs23,000 per annum would be paid to the farmers for 33 years, with an annual addition of Rs800. The payments would be made by the LIC under its Relief and Rehabilitation policy.
The decision to sign a Memorandum of Understanding with the LIC was made during a cabinet meeting on Monday. The decision is important in view of the farmers’ protests at different parts of the state and the support they are receiving from the Congress and the other opposition parties.
The payment to the beneficiaries would be made through bank transfer.
The LIC would receive the whole amount from the government. The district magistrates would ensure the payment within three months of the declaration of the award. They would also provide a list of beneficiaries to the LIC.
The state cabinet also decided to provide loans at 3% per annum to small farmers through cooperative societies. The state government proposes to disburse Rs4000 crore for the purpose in 2011-2012.
Loans upto Rs3 lakh would be given at an interest of 7%. The farmers would, however, be entitled to an interest subsidy of 3% from the Centre and 1% from the state, which would bring down the rate of interest to 3%.