MUMBAI, June 9: Finally waking up to the spate of suicides in the State, the Joshi government has waived interest on loans and also decided to reschedule repayment of loans taken by farmers in the two scarcity-hit regions of Marathwada and Vidarbha.In a significant decision that promises succour to 20 lakh farmers in more than 20,545 villages in the two backward regions, Chief Minister Manohar Joshi said the government has decided to sign away interest amounting to Rs 42 crore on the aggregate principal amount of Rs 280 crore.Addressing the media after the weekly Cabinet meeting, Joshi said farmers whose crop had failed following unseasonal rains and hailstorms early this year will also receive financial assistance in the form of seeds. "The Cabinet has decided to sanction Rs 500 per hectare and a maximum up to two hectares to the farmers. The assistance will be in the form of seeds for the ensuing kharif season," Joshi said.
"We shall take assistance from the National Bank for Agriculture and RuralDevelopment for the purpose. 15 per cent of the capital amount required will be given by the State government to the State Cooperative Bank," the Chief Minister added.
As for financial assistance in the form of seeds, Joshi said the government has already released Rs 113 crore to the farmers from the two regions.
During the briefing, the Chief Minister said the Cabinet has permitted the State-run Maharashtra Road Development Corporation to develop its properties to raise additional funds to undertake developmental activities.
The Public Works Department has also been empowered to develop the State guest house at Latur and properties at Mangalwarpeth, Pune, Kawlanaka and Shahupuri, Kolhapur, and the prime property on Napean Sea Road in Mumbai, which houses the corporation's office. The estimated Rs 100 crore raised thus would be treated as the government's equity in the corporation.
Joshi admitted that the Revenue Department had objected to these development activities for technical reasons. "Thecontention of the Revenue Department was that before permitting the Public Works Department, all the properties should be first transferred in the name of the Revenue Department and then permission should be granted for development. We have overruled the objections," Joshi said.
Interestingly, the Revenue Department is headed by Narayan Rane, the Chief Minister's arch rival.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
