Farmers to get relief as Act to be revived

The Maharashtra Cabinet today cleared the decks for reviving the Maharashtra Debt Relief Act, 1971, (MDRA), that bars private moneylenders in the state from recovering outstanding owings from farmers.

The Cabinet deferred to Tuesday, another proposal, that seeks to waive off the interest and principal amounts on loans owed by agriculturists in the state to cooperative banks in Maharashtra.

Chief minister Sushilkumar Shinde said: "We have decided to issue an ordinance in this regard which will be forwarded to the president of India for approval. It has been noticed that a lot of moneylenders (in the informal sector) harass farmers for recovering the principal and (high) interest on loans taken for sowing crops."

Shinde added that the MDRA was aimed at providing relief to farmers who have experienced failed sowings consecutively and who are being hounded by these private moneylenders.

Under the provisions of this Act (introduced in 1971 and coming into force in 1975 till 1999 when it lapsed) no civil court may entertain any litigation launched by private moneylenders to recovery loans disbursed to farmers.

Shinde said that the decision was taken keeping in mind the financial pressures being faced by farmers in the state that has witnessed five years of drought and errant monsoon seasons.

Many farmers, predominantly in the districts of Yevatmal, Amravati and Wardha (in the Vidarbha region) have been committing suicide due to consistent crop failure.

While mono-cropping (instead of sowing a variety of crops) is being cited as the main reason for the failed sowings along with the monsoon playing truant, the state government is keen to alleviate the financially strapped farmers who have witnessed three crop failures in the current season itself.

In another decision the cabinet today approved the ambitious Rs 1178 crore project for erecting an elevated railway network connecting the western suburbs of Versova and Andheri with Ghatkopar located in the eastern region of Mumbai city.

The 15 kilometer long rail networking expects to facilitate commuting on this west-east rail corridor for 45000 persons in one hour.

This project is to be worked out on a private-public participation and would draw from the experience of the Delhi metro railway project.

The state government intends to seek financial assistance from the Union government for the project as well with the Mumbai Metropolitan Regional Development Authority (MMRDA) to function as the nodal agency.

The project will complement the two link roads that are currently being constructed by the Mumbai Metropolitan Regional Development Authority to connect Jogeshwari with Vikroli and Santacruz with Chembur as two new west-east road corridors.