The Union Cabinet today gave its approval to continue interest subvention to Public Sector Banks (PSBs), Regional Rural Banks (RRBs), Cooperatives Banks and NABARD to enable them to provide short-term crop loans up to Rs 3 lakh to farmers at 7% p.a. during the year 2012-13.
It also decided to provide additional interest subvention of 3% p.a. to those farmers who repay on time, i.e. within one year of disbursement, their short-term crop loans taken during the year 2012-13. The Cabinet also permitted the release of 10,901 crore Rs as interest subvention for 2012-13 .
Interest subvention has also been allowed for small and marginal farmers having Kisan Credit Card for loan against negotiable warehouse receipts for post harvest at 7% p.a. interest for a period of six months on the same rates as applicable for crop loans.
The Cabinet has approved the release of 442 crore rupees as interest subvention to small and marginal farmers having Kisan Credit Card against negotiable warehouse receipts, for post-harvest.
Since 2006-07 centre has been subsidizing short-term crop loans to farmers in order to ensure the availability of crop loans to farmers for loans upto Rs.3 lakh at 7% p.a. Our correspondent reports, Banks have been consistently meeting the target set for agriculture credit flow in the past years.
For the year 2012-13, the target for agricultural credit flow has been raised to 5,75,000 crore Rs from 4,75,000 crore Rs in the year 2011-12.
The Union Cabinet also gave the approval for a new centrally Sponsored Scheme of Pre-Matric Scholarship for Scheduled Tribe (ST) students, studying in Class nineth and tenth. The decision will go a long way in improving participation of ST students enrolled full time in secondary education in government schools whose parents' annual income does not exceed two lakh rupees.
The Scheme will also help in minimize dropouts, especially in transition from the elementary to secondary stage of education. Over 22 lakh ST students are estimated to be covered under the scheme every year during the 12th Five year Plan. The scheme will be introduced with effect from July this year and will be implemented through state governments.
The implementing agencies will receive 100 percent Central assistance for expenditure under the Scheme. The financial requirement for this year is 472 crore rupees and a provision of 86 crore rupees has already been made in the current year`s budget.
The Union Cabinet also gave its approval for revival of NEPA Limited through infusion of funds of over 234 crore rupees, waiver or conversion of around 600 crore rupees and reduction of equity share capital to the tune of over 266 crore. 1997 pay scales to the employees, enhancement in the superannuation age of employees from existing 58 years to 60 years, recruitment of Director (Finance),
implementation of VRS and continuation of the present CMD till November 2015 on attaining the age of 65 years has also been approved.
The Cabinet also approved relaxation of Cabotage Policy under the Merchant Shipping Act – 1958 for transshipment of Export-Import containers to and from the International Container Transshipment Terminal (ICTT) at Vallarpadam of Cochin. The primary objective of relaxation in Cabotage Policy is for ICTT of Vallarpadam to attract cargo destined for Indian ports which are presently being transshipped at Colombo and other foreign ports.
