Cabinet approves 3% interest subvention extension for crop loans

News:

• Cabinet has approved a proposal to extend a three per cent interest subvention scheme to banks to ensure farmers get crop loans up to Rs 3 lakh at seven per cent a year interest.
• An additional subvention of three per cent would be given to those who pay loans on time.
• The Cabinet approved an expenditure of Rs 18,110 crore for FY16 to enable banks to provide three per cent interest subvention on short-term crop loans to those who make timely repayment.
• The Cabinet also approved Rs 374 crore for farmers with Kisan Credit Cards.
• For 2015-16, the target of agriculture credit has been raised to Rs 8,50,000 crore, from Rs 8,00,000 in 2014-15.
•  Cabinet extended the Modified Special Incentive Package Scheme (MSIPS) by five years and also expanded the scope of the programme to cover 15 new product categories.
• It provides capital subsidy of 20 per cent in special economic zones (SEZ) or 25 per cent in non-SEZ units engaged in manufacturing of electronics items. The original scheme was for three years.
• The Cabinet Committee on Economic Affairs (CCEA) allowed bulk exports of rice bran oil and removed quantitative restrictions on out-bound shipments of organic edible oils.

Source: BS