Agriculture Minister Pandurang Fundkar made the announcement yesterday after inaugurating the new hostel of the Vasantrao Naik College for Biotechnology here.
Expressing concern over the farmers' suicides in Yavatmal and Osmanabad districts, Fundkar said the move was aimed at "empowering the farmers".
"The state government has sanctioned a Rs 1,100 crore pilot project for both the districts aiming to empower the distressed farmers thereby curbing the spate in suicides," he said.
"The project would help the farmers to start ancillary business along with their farming so that they could enhance their earnings to lead a dignified life", he added.
"Such colleges would be identified and their recognition would be cancelled if they fail to improve their existing facilities," he said.