Tamil Nadu CM asks PM to reconsider crop loan subsidy

Published on April 29, 2015 16:08:08 PM
Tamil Nadu government on Wednesday asked the Centre to reconsider proposed changes in the interest subvention scheme for crop loans for farmers, saying such proposals should be discussed with state chief ministers and their consent should be taken first.

In a letter to Prime Minister Narendra Modi, chief minister O Panneerselvam said that Centre was reportedly planning to allow banks to lend at normal priority sector rate.

Besides, he said that it is proposing to change the method of disbursing the interest subvention to a Direct Benefit Transfer based reimbursement model, after the farmer has settled his liabilities to lending institutions.