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Interest on crop loans to be waived if principal paid: Karnataka CM
Siddaramaiah announced the formation of a high-powered committee to study the status of backward taluks in the state
Bengaluru: Chief minister Siddaramaiah on Friday announced waiver of interest on crop loans if farmers repay the principal amount.
“Our government has resolved to waive the entire interest on farm loans if the principal of medium- and long-term loans in cooperative banks is settled,” he said in the assembly on the final day of the winter session at Suvarna Soudha in Belagavi.
BJP members in the assembly objected to the announcement, insisting on complete farm loan waiver. Coming down on BJP leaders, Siddaramaiah said former chief minister BS Yediyurappa had failed to allocate any funds for farm loans during his tenure.
“In the 2018 manifesto, the BJP had said that farmers’ crop loans up to ₹1 lakh from nationalised banks and cooperative societies would be waived off in the first cabinet meeting of the government. But did the BJP do anything about it? They did not release a single paise,” the CM said.
Though farm loan waiver was not promised in the Congress manifesto, Siddaramaiah said the government’s decision on loan interest would benefit farmers.
Siddaramaiah also announced a series of initiatives aimed at development of North Karnataka. These measures include formulation of a comprehensive action plan to promote prominent tourist destinations and establishment of an industrial estate spanning 2,000 acres near Belagavi.
Among the announced projects, a foundry cluster on 500 acres near Belagavi, an FMCG cluster in Dharwad district generating 2,400 jobs, and a manufacturing cluster on 1,500 acres in Vijayapura were highlighted. The CM said emphasis would be given to cotton-based industries in the cotton hub of Raichur.
Siddaramaiah disclosed plans to upgrade the Dharwad-based Water and Land Management Institute (Walmi) as a centre of excellence for water management. “The proposed centre aims to impart water literacy and raise wareness about soil salinity management,” he said.
The chief minister also reiterated government’s commitment to completing the Ballari and Raichur airport projects, adding that the development of North Karnataka’s backward regions would contribute to the state’s GDP growth.
Dissatisfied with the chief minister’s response on the development of North Karnataka, BJP leaders walked out of the assembly.
Earlier in the day, Siddaramaiah announced the formation of a high-powered committee to study the status of backward taluks in the state. Responding to BJP MLA Basanagouda Patil Yatnal’s request to set a deadline for the committee’s report, the chief minister said that it would be required to submit its findings within six months.
Siddaramaiah referred to the recommendations of a panel led by economist DM Nanjundappa in 2002-03, including ₹31,000 crore for 114 backward taluks. Acknowledging a delay in implementing the recommendations, he expressed the government’s commitment to addressing the disparity through the new high-powered committee.
Highlighting that ₹46,453.96 crore was allocated for the development of backward taluks from 2007-08 till now, the CM noted that only ₹32,433 crore had been spent and disparity remained. He assured the assembly that his government is positive about implementing the high-powered committee’s recommendations to eliminate disparities.He said his government is committed to the development of the state’s 116 backward taluks, including 11 extremely backward ones.
