The Andhra Pradesh Chief Minister, Mr. N. Kiran Kumar Reddy, on Sunday announced that farmers will get a loan of up to one lakh without any interest for their requirements beginning the rabi season later during the year.
About 95 lakh farmers are expected to benefit from the new ‘zero interest’ scheme which the Chief Minister announced coinciding with the 142nd birth anniversary of Mahatma Gandhi during his tour of Prakasham district at Yeraguntapalem village, according to a statement from the Chief Minister’s Office.
As per estimates, about 95 per cent of the farm community in the State secure a loan of up to Rs. One lakh and them take up farming. Rest of the five per cent borrow more than one lakh. All farmers including tenant farmers will be eligible for loans under this new scheme.
This zero interest loan is being considered for the first time ever by any State in the country, the statement claimed. This would require about Rs.650 crore to Rs.700 crore which the State Government would deposit into banks. However, the details of the scheme and how its works has not been provided by the Government.
Irrigation
In yet another important development, the State Chief Minister announced a Rs. 1800 crore Indira Jalaprabha scheme at Bangalapalli village in Prakasham district of the State in the presence of the Union Minister for Health, Mr.Ghulam Nabi Azad.
The new scheme proposes to bring lands belonging to bring about 10 lakh acres of land belonging to scheduled castes and schedules tribes under cultivation over next three years. The focus of the scheme is to help bring poor people from SC and ST families come out of the poverty line.