Bhubaneswar: In a major development, for the first time, Odisha government has decided to provide loans to landless farmers in the State.
Informing about the development, Cooperation Minister Surya Narayan Patro on Friday said, "Loans will be provided to landless farmers who basically take up agriculture on other people's land."
Loans will be provided to individual farmers, who will be considered as 'Joint Liability Groups, similar to that being provided to various Self Help Groups (SSG).
According to Patro, Odisha Chief Minister Naveen Patnaik has directed for disbursal of Rs 7200 crore as loans to farmers in the Kharif season.
A maximum of Rs 50,000 will be provided to per group of landless farmers without any securities at one percent interest.
Out of the total Rs 7200 crore, Rs 200 crore would be earmarked for disbursal to landless farmers under the joint liability groups while Rs 1,000 crore will be spent as term loan for agriculture sector, Patro added.
The loans to landless farmers will be provided through various cooperative banks and societies instead of commercial banks.