Former Prime Minister of India - Shri Atal Bihari Vajpayee

Suo-Motu Statement of the Prime Minister Shri Atal Bihari Vajpayee in Parliament regarding further relief to the drought affected States

Following is the text of the suo-motu statement of the Prime Minister regarding further relief to the drought affected states, in Parliament, today:

~I had earlier announced that the current year’s interest on both the kharif crop loan and agricultural term loans will be deferred and the loans proper will be rescheduled into term loans; to be recovered over the next 5 years in the case of small and marginal farmers, and 3 years in the case of other farmers. In addition, interest, for one year, on both these types of loans, amounting to Rs.6040 crores, having been deferred, was to be spread out over several years as a liability.

In order to further mitigate the hardship of our farmers in these States, I have now, decided to waive completely, the first year’s deferred liability of interest on Kharif loans, as a one time measure. Such of our citizens as having availed of this facility shall be entitled to obtain an endorsement of this waiver directly from their loaning Bank. Appropriate guidelines in this regard will be issued by the RBI.

As for Agricultural Input Subsidy, my Government had already announced a grant of this to small and marginal farmers, amounting to over Rs. 1490 crores. In view, however, of the severity of the drought, I have decided that this Agricultural Input Subsidy will now be extended further, to cover all other farmers too, for both the sown and unsown areas, upto a ceiling of 2 hectares, as a one time measure and in relaxation of existing guidelines. On the basis of assessment to be made by the Ministry of Agriculture, in consultation with the Finance Ministry, all the 14 affected States will receive additional amounts, based on actual land holding and cultivation patterns. These States will therefore, now receive in excess of a further Rs.555 crores, for combating drought, to be met from either the Calamity Relief Fund or the NCCF.

For cattle, further additional amount of Rs.25 crores will now be provided to the Department of animal Husbandry, for support to such ‘gaushalas’ as tend to more than 1000 heads of cattle. Releases may be permitted directly to NGOs running such ‘gaushalas’. A Committee comprising of officers from the Department of animal Husbandry, Ministry of Finance and the PMO will authorize such releases, in tandem with like and simultaneous disbursements from the Prime Minister’s Relief Fund.

I wish to add that the Government has already earlier approved additional assistance for cattle in which a further sum of Rs.70 crores for cattle care has already been allotted to Rajasthan. I had also sanctioned free transportation of cattle-grade feed and fodder to State Governments; the period of such free transportation of water and fodders will continue until the end of June, 2003.

On the foodgrains front, the Government has already sanctioned an allotment of 38.75 lakh Metric Tonnes of rice and wheat, costing over Rs.4000 crores; free of cost to the 14 drought-affected States of which 19.50 lakh Metric Tonnes for current drought. This tonnage is for three months only, that is, upto January 2003. More foodgrains will thereafter be made available to needy States. It is desirable that there be systematic monitoring however, of the actual utilisation of this foodgrain in generation of relief employment. Of course, states are free to seek additional allocations following utilisation of the allotted foodgrains. It is in this context that PDS functioning must be improved.

I recognize that acute water shortage exists, particularly in the drought effected areas of Rajasthan. I have, therefore, instructed the Ministry of Railways to run additional water tanker trains to, in part, mitigate this critical deficiency. The Ministry of Water Resources will immediately appoint a task force to assist the affected States in this regard. I am also instructing the Ministry of Petroleum to examine the possibility of deep drilling rigs being employed for sinking deep tube wells.

We will meet the challenge of this drought unitedly and shall ensure that the difficulties of our citizens are mitigated.~