Bangalore: The State Government which announced a novel farm loan waiver scheme has now gone a step further in covering a larger spectrum of farmers, which would cost the exchequer around Rs. 2,300 crore.

Deputy Chief Minister B.S. Yediyurappa told presspersons here on Wednesday that the deadline for the farm loan waiver scheme had been extended till May 31 and farmers who cleared their crop loan dues to cooperative banks before the deadline would be entitled to a waiver of Rs. 25,000 apart from the interest on the remaining part of the loan.

The earlier deadline was March 31, which was extended to April 30.

Further, the Rs. 25,000 waiver in the principal amount would be for all farmers irrespective of the loan taken. The announcement in the budget was that it would be applicable to only those who had obtained a loan of Rs. 25,000 and this was subsequently extended up to Rs. 50,000 wherein the first Rs. 25,000 of the principal would be waived and the balance would be eligible for interest waiver.

Mr. Yediyurappa, who earlier in the day held discussions with Chief Minister H.D. Kumaraswamy, told presspersons that the farm loan waiver would now benefit 15.63 lakh farmers across the State, apart from fishermen and weavers who were also eligible for the cooperative loan and interest waiver scheme. Further, all loans obtained from January 1, 2006 to March 31, 2007 would be entitled for the benefits. He ruled out any extension of the deadline.

The Deputy Chief Minister, who also holds the Finance portfolio, said the Government would ensure that cooperative banks and other institutions were not put to problems because of the loan waiver scheme.

The Chief Minister had promised that the proceeds from the auction of government lands in Bangalore would also be utilised to offset the losses due to the loan waiver.

With reference to the Bhagyalakshmi scheme, Mr. Yediyurappa said the bonds would be distributed to the beneficiaries shortly.

On the political developments in the State and the statements of the former Prime Minister and president of JD (S) H.D. Deve Gowda, the Deputy Chief Minister expressed confidence that the Janata Dal (S) would hand over charge to the BJP at the end of its 20-month tenure.

"I have immense faith in the Chief Minister. We have worked together and done our best for the State. Both of us have adhered to the common minimum programme. If need be, I will call on Mr. Deve Gowda. We respect his suggestions."

On the byelection for the Ullal Assembly seat, the Deputy Chief Minister said it was for the Janata Dal (S) to extend support to the candidate to be fielded by the BJP.

"We had extended support to the Janata Dal (S) in Chamundeshwari and it is now for the Janata Dal (S) to reciprocate."

Senior BJP Ministers, including D.H. Shankaramurthy and B. Nagaraj Shetty, were present.

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