Date:08/10/2008 URL: http://www.thehindu.com/2008/10/08/stories/2008100854480700.htm

Tamil Nadu

Loan extension for farmers

Special Correspondent

8,000 farmers qualify in Nagapattinam for the scheme

NAGAPATTINAM: A one-month extension has been given to farmers who have availed of the one-time settlement (OTS) for crop loan waiver.

Under the Finance Minister’s agricultural debt waiver/relief scheme, “other farmers” who have taken loans larger than Rs. 50,000 or have more than five acres of land, could get a waiver of 25 per cent of their loan amount on payment of the remaining amount in three instalments.

Nearly 8,000 farmers in Nagapattinam qualified for this scheme, involving a subsidy of about Rs. 12 crore.

The first instalment was due by September 30, but some farmers requested an extension since the kuruvai harvest season was still progressing then.

New deadline

In this situation, an Indian Overseas Bank official said that the deadline for the first instalment has been extended to October 29. Those who do not pay the first instalment by that date would not qualify under the scheme and would have to pay the whole amount along with interest from March 31.

Further extension sought

Meanwhile, Consortium of Cauvery Delta Farmers general secretary V. Sathyanarayanan has written to the government asking for extension of the deadline to March 31 next year when the second instalment is due.

He has also asked for a waiver of Rs. 75,000 of the loan amount to benefit “other farmers” similar to marginal and small farmers.