Date:18/01/2008 URL: http://www.thehindubusinessline.com/2008/01/18/stories/2008011852591000.htm

Back Centre approves Rs 530 cr for interest waiver on farm loans

31 debt-ridden districts across four States

Our Bureau

New Delhi, Jan. 17 The Government on Thursday approved the release of Rs 530 crore towards waiver of interest on agriculture loans in 31 debt-ridden districts across four States.

The decision to release additional Rs 530.06 crore towards waiver of accrued interest in 31 districts of Maharashtra, Andhra Pradesh, Karnataka and Kerala was taken by the Union Cabinet at its meeting here, Information and Broadcasting Minister Mr P.R. Dasmunsi, said after the meeting.

“The decision would benefit the borrowers whose loans were overdue as on July 1, 2006 in these debt-stressed districts,” he said. The approved fund would be the final share of the Centre towards such waiver. The Centre has already paid Rs 1,359 crore out of its total commitment of Rs 1,889 crore. The total outlay on the waiver scheme, including the share of the States, was Rs 3,778 crore.

Pact with SACU

The Cabinet also approved the signing of MoU between India and South Africa Customs Union (SACU), which is expected to facilitate the expansion of trade between the parties by providing the mechanisms and conditions to negotiate a Preferential Trade Agreement (PTA), in conformity with the rules and principles of the World Trade Organisation (WTO), Mr Dasmunshi said.

SACU, the oldest Custom Union of the world comprises South Africa, Namibia, Botswana, Swaziland and Lesotho.

In another decision, the Cabinet approved the signing of the agreement between India and Egypt on the abolition of visa requirement for diplomatic, official and service passport holders. “This agreement will facilitate visa-free travel between India and Egypt for diplomatic, official and service passport holders while entering, transiting through and exiting from the territory of the other country,” Mr Dasmunsi said. India has already entered into similar agreements with 35 other countries.

The Cabinet also approved signing of a treaty for Mutual Legal Assistance in Criminal Matters with Australia.

The treaty will improve the effectiveness of both countries in the investigation and prosecution of crime, including crime related to terrorism, he said.

It also cleared the creation of a post of Joint Secretary in the National AIDS Control Organisation (NACO) under the National AIDS Control Programme Phase-III.