The Calamity-hit Farmers Assistance Scheme 2015 has been approved by state cabinet and would be effective from April 1 this year, Bihar Chief Minister Nitish Kumar.
He told the reporters after addressing 'Janata ke Darbar me Mukhya Mantri' programme that the scheme had been formulated after studying those existing in other states particularly those which witnessed suicides by farmers.
The compensation amount would, however, will not be given in the hands of the kins but would be put into a fixed deposit so that the affected family gets regular interest which could be utilised for the children and other dependents of the family, he said.
Kumar said that Rs one lakh will be given against the bank loan or money borrowed by the farmer from financiers which forced him to end his life would be provided by a committee headed by District Magistrate.
In addition widow pension would be provided to the woman whose husband takes extreme.
Asked to comment on reports about a farmer taking his life in Gaya district because of non-payment after procurement of his paddy, Kumar said he had ordered a probe into the incident and the guilty would be punished.