Daijiworld Media Network – Bengaluru (EP)
Bengaluru, Oct 7: The state government has responded to the requests of District Credit Cooperative (DCC) banks and cooperative societies to compensate for loans of farmers that are condoned by them under ‘Sala Manna’, scheme and released Rs 1,600 crore as first instalment.
The controller of cooperative societies, M K Ayyappa, who gave the details, said that the government has released Rs 1,600 crore and DCC banks should submit details of loans condoned by them.
“Cooperative societies and banks have distributed Rs 5,300 crore worth loan till September this year. They have aimed to distribute Rs 12,000 crore during the present financial year. Rs 10,900 crore were lent last year,” he said.
Chief minister Siddaramaiah
The state government had ordered to waive loans up to Rs 50,000 each out of loan borrowed by the farmers from the cooperative societies and banks. Twenty two lac people benefited by the scheme and the government had to compensate Rs 8,000 crore to the banks and societies.
DCC banks and societies were repeatedly urging the government to release the funds. Now the announcement has been made about the first instalment.