Karnataka CM asked that PM Modi addresses the steep cut of 58 percent in Short Term Agricultural Credit Limit for farmers to ensure they can continue to receive soft loans.
Published Nov 29, 2024 | 4:11 PM ⚊ Updated Nov 29, 2024 | 4:11 PM
Karnataka CM Siddaramaiah meet PM Modi. (Supplied)
Karnataka Chief Minister Siddaramaiah wrote a letter to PM Narendra Modi on Friday, 29 November, urging the Union government to address the several critical issues affecting the state, including agricultural credit, irrigation projects, urban development, and financial allocations. He appealed to the PM in a letter, shortly after meeting with him in the nation’s capital.
One of the primary concerns highlighted in the letter is the steep cut of 58 percent in the Short Term Agricultural Credit Limit for Karnataka. The CM pointed out that while the state was sanctioned ₹5,600 crore for the previous year (2023-24), NABARD has approved only ₹2,340 crore for the current year (2024-25).
“This will seriously impact the cost of finance for farmers unless the state steps in to provide additional interest subvention,” he said, urging the PM to intervene and direct the Finance Ministry to rectify the situation so that farmers in Karnataka can continue to access soft agricultural loans.
The Congress leader also reminded Narendra Modi about the promise made in the Union Budget of 2023-24 regarding ₹5,300 crore for the Upper Bhadra Project.
Referring to the Cabinet note that makes it possible for Karnataka to receive funds under the Accelerated Irrigation Benefit Programme, Siddaramaiah sought immediate approval for the proposal, stressing that the Upper Bhadra project is essential for providing irrigation to the drought-prone farmlands of central Karnataka.
ದೆಹಲಿಯಲ್ಲಿ ಇಂದು ಪ್ರಧಾನಿ @narendramodi ಅವರನ್ನು ಭೇಟಿಯಾಗಿ ರೈತರಿಗೆ ನೀಡುವ ನಬಾರ್ಡ್ ಸಾಲ ಪ್ರಮಾಣ ಹೆಚ್ಚಳ, ಭದ್ರಾ ಮೇಲ್ದಂಡೆ ಯೋಜನೆಗೆ ಅನುದಾನ, ಮೇಕೆದಾಟು ಹಾಗೂ ಕಳಸಾ-ಬಂಡೂರಿ ಯೋಜನೆಗೆ ಅನುಮತಿ ನೀಡುವುದು, 16ನೇ ಹಣಕಾಸು ಆಯೋಗದಲ್ಲಿ ರಾಜ್ಯಕ್ಕೆ ನ್ಯಾಯಯುತ ತೆರಿಗೆ ಪಾಲು ಹಂಚಿಕೆ ಮಾಡುವುದು ಸೇರಿದಂತೆ ರಾಜ್ಯದ ಹಿತಾಸಕ್ತಿಯ ಹಲವು… pic.twitter.com/hDMqOiL1sg
— Siddaramaiah (@siddaramaiah) November 29, 2024
Siddaramaiah expressed concern over delays in clearing irrigation projects, which are crucial for the state’s development.
He specifically mentioned two major projects—Mekedatu Balancing Reservoir on the Kaveri River and the Kalasa Bandhuri project on the Mahadayi River – which are awaiting approval. While the first project needs Jal Shakti Ministry as well as an environmental clearance, the latter needs wildlife clearance.
He urged Prime Minister Modi to direct the relevant ministries and authorities to expedite the necessary clearances for these projects.
Bengaluru’s growing infrastructure needs were also a focus of the letter. As one of the top contributors to India’s GDP and a hub for technology and innovation, the city requires substantial investment to improve its infrastructure.
“We have major plans to improve the infrastructure, de-congest the city, and upgrade the living standards for all its citizens,” Siddaramaiah wrote. He called on Prime Minister Modi to direct the Ministry of Urban Development, the Ministry of Railways, and the Ministry of Road Transport to consider providing special assistance to the city, particularly for urban transport and public transport systems.
In addition to Bengaluru, Karnataka is home to 13 Tier-2 cities that are also experiencing rapid urban growth. Siddaramaiah mentioned that while the state has allocated ₹2,000 crore under the Mahatma Gandhi Nagar Vikas Yojana over the next three years, this amount is not enough to meet the infrastructure needs of these cities.
He requested that the Ministry of Urban Development allocate ₹10,000 crore for these cities under the AMRUT scheme or similar programs.
Additionally, the Chief Minister raised concerns over the state’s share in the divisible pool of taxes as per the 15th Finance Commission. Noting that Karnataka’s share being reduced by one percent has created significant financial shortfall, Siddaramaiah said that the state was not adequately compensated for it.
Hence, he asked PM Narendra Modi direct the Union finance ministry to provide two special grants: ₹5,495 crore to offset the reduction in the state’s share and ₹6,000 crore for the Peripheral Ring Road and the rejuvenation of water bodies.
Siddaramaiah also expressed hope that the upcoming 16th Finance Commission would ensure that states contributing a larger share to central taxes are not penalized by cuts in their share of those taxes.
(Edited by Neena)
