Lending relief to the farmers whose crops are hit by unseasonal rains and hailstorm, Prime Minister Narendra Modi today announced higher compensation for the damage of crops. He further asked the banks and the insurance companies to ease criteria to facilitate government support for the famers.
Saying the farmers have suffered a lot on account of natural calamities, the amount of compensation has been increased to 1.5 times. “If earlier, he was getting Rs 100 as compensation, now he will get Rs 150, if it was Rs 1 lakh, he will get Rs 1.5 lakh… a 50 per cent increase,” said PM Modi.
The government’s move has come after the review of the crop damage by the ministers who were asked to undertake an ‘on the spot’ assessment of the crop damage.
On Tuesday, the Union Agriculture Minister Radha Mohan Singh had said that unseasonal rains and hailstorms have damaged rabi (winter-sown) crops in about 113 lakh hectares of crop area across the country.
“It will impose a heavy burden on the exchequer but it is important to help them as they are in distress. We have to worry about the farmer of India, who faces problems due to lack of adequate rainfall or unseasonal rains,” the Prime Minister noted.
PM Narendra Modi was speaking at the launch of Rs 20,000-crore MUDRA (Micro Units Development and Refinance Agency) Bank in Delhi, where he emphasised on the need to support the small entrepreneurs. Lauding the efforts of the small scale sector while launching the MUDRA Yojna, he said aiding them is the biggest way to help Indian economy grow and prosper. It is aimed at providing financial assistance to the unfunded small entrepreneurs who provide employment to a large number of people.
“Large business groups, which attract a lot of media attention, provide employment to only 1.25 crore people,” he said, adding that 5.75 crore small entrepreneurs, with an average loan size of Rs 17,000, employ 12 crore people. Emphasising that generating employment and promoting self-employment is the priority of the government, providing loans to small entrepreneurs will provide a big push to the GDP.
Expressing confidence that within an year’s time, major banks would also adopt the MUDRA model, PM Modi said “Combination of integrity with MUDRA – capital – will be the key to success for small entrepreneurs”.
The Prime Minister also appreciated the efforts made by the banking sector of India in making Jan Dhan Yojana a success. He said that he envisioned that within a year, banks would queue up to give loans to MUDRA applicants.
Speaking at the same event, Finance Minister Arun Jaitley said MUDRA Bank is aimed at “funding the unfunded”.