MINISTER OF THE STATE IN THE MINISTRY OF PLANNING
(SHRI M.V. RAJASEKHARAN)
(a): Government of India has approved a special rehabilitation package for six districts of
Maharashtra namely; Wardha, Yavatmal, Amravati, Akola, Buldhana and Washim
involving an amount of Rs. 3873.26 crore.
(b): Details of the Vidharbha Package announced by Hon`ble Prime Minister is at
Annexure I.
(c) & (d): The scheme-wise progress of funds released under the Vidharbha Package is
at Annexure II.
Annexure-I
Details of the Rehabilitation Package announced by the Prime Minister for Vidarbha
region of Maharashtra
(i) Ex-gratia assistance from PMNRF: To alleviate the sufferings of debt stressed
farmers, a sum of Rs. 50 lakhs/district would be placed at the disposal of respective
District Collectors.
(ii) Debt relief to farmers: Debt relief package announced by the Government of India
on 18th June, 2004 will be further liberalized to provide relief to the farmers in the
identified districts. It is estimated that Rs. 1296 crore of overdue loan amount as on
30th June, 2006 in the identified districts of Vidarbha in Maharashtra will be
restructured/rescheduled under the debt relief package for farmers in distress or farmers
in arrears. Debt relief will be provided to the farmers and they will become eligible
for fresh loan under the package. Detailed guidelines to operationalise the special
debt relief package will be issued by RBI/NABARD.
(iii) Credit Flow: An additional credit flow of Rs. 1275.00 crore will be ensured in these
six districts in 2006-07. Special teams comprising NABARD and the Lead Banks will be
deputed to ensure that the distressed farmers` accounts are restructured/ rescheduled in a
time bound manner and fresh credit starts flowing.
(iv) Interest Waiver: The entire interest on overdue agricultural loans as on 1st July 2006
will be waived in the six affected districts so that all the farmers will have no past interest
burden as on that date. This measure will make them immediately eligible for fresh loan
from the banking system. The amount of interest on overdue loans in these six districts as on
1st July 2006 is estimated to be Rs. 712 crore. The burden of interest waiver will be shared
equally between the Central and the State Government. While apportioning the burden of
overdue interest waiver equally between the Government of India and the states, due care
would be taken to offset releases, if any, already made by the State Governments on this
count.
(v) Assured Irrigation Facilities : 1.59 lakh ha. area will be brought under assured
irrigation facilities at a cost of Rs. 2177.00 crore over a period of three years through
completion of all major, medium, minor irrigation projects.
(vi) Seed Replacement Programme: A massive Seed Replacement Programme will be
undertaken with 50% subsidy in the identified districts . The entitlement for quality seed is
being increased from half acre per farmer to one hectare per farmer. This Programme is
expected to cost Rs. 180 crore over a period of three years.
(vii) Watershed Development: Watershed Development programme will be undertaken
covering following components :
# Construction of 500 check dams per year per district over the next three years. The
programme will cost Rs. 60.00 crore per year.
# Treatment of 15,000 ha. per year per district under watershed development programme
for which grant support of Rs. 60 lakhs per watershed of 1000 hectare area each, entailing
an outlay of Rs. 54.00 crore per year will be provided.
# Rain water harvesting structures covering 1000 beneficiaries per district per year for
accelerated growth of irrigation potential to benefit SC/ST beneficiaries including small
and marginal farmers. Financial assistance for the scheme will be provided in the form of
50% back ended capital subsidy alongwith 50% bank loan. The scheme will involve
subsidy assistance of Rs. 1.00 crore per district per year.
(viii) Horticulture Development: All the identified districts will be covered under the
National Horticulture Mission. A Technology Mission on Citrus for addressing the problems
of citrus production, protection, post harvest technology and processing in Vidarbha will be
launched under the supervision of National Research Center on Citrus- Nagpur.
(ix) Micro Irrigation: All the six districts are covered under the scheme of micro
irrigation. The program will be intensified to cover 53400 hectare under drip and sprinkler
irrigation involving an investment of Rs. 78.00 crore @ Rs.26.00 Crore per year.
(x) Extension Services: Effective and efficient extension service mechanism will be put
in place in the identified districts for empowering the farmers. Agriculture technology
management agencies (ATMA) will be operationalised in all the districts to ensure extension
support and convergence at district level.
(xi) Subsidiary Income: The components relating to livestock and fisheries will involve:
# Induction of 1000 High Yielding Milch Animals per district per year with 50 %
subsidy (balance bank credit).
# Induction of 500 female calves per district per year providing 50 % of rearing
cost.
# Supply of fodder blocks for feeding inducted animals with 25 % subsidy.
# Establishment of four-fodder block making units with 50 % subsidy (balance
bank credit).
# Provision of adequate health care to all animals.
# Taking up massive A I program and estrus synchronization of 70 % breedable
animals.
# Establishment of 10 milk chilling plants.
# Fisheries in 100 hectares per district providing 40 % of capital and input cost as
subsidy and rest to be sourced through bank credit.
# The package for livestock/fisheries/fodder bank will involve support of Rs.135
Crores.
(xii) Implementation Mechanism
$ State Level Coordination & Supervision Committee including representatives of the
Government of India and the State Government, and
$ Implementation through District Level Committee, Panchayati Raj Institutions.
$ Creation of appropriate Institutional Structures and Special Purpose
Cooperatives/Community Based Organizations at local level for delivery of the
package and optimum utilization of resources in a time bound manner.