"It has been decided that interest on the crop loans taken by farmers, hit by the drought like conditions, shall be borne by the state-government, which would be around Rs 300 crore," Modi told newsmen on the sidelines of his Vivekananda Yuva Vikas Yatra.
"The government has also decided to give 50 per cent relief in the electricity bills of such farmers," he said.
"Its also the responsibility of state government to be concerned about farmers who are facing hardships, on account of drought like situation prevailing in Gujarat, earlier," Modi said.
The monsoon arrival in this part of Western coast was somewhat delayed this year. It touched Gujarat coast around June 17, but afterwards remained static for a long time, leading to drought like conditions in many parts of the state.
Regions of Kutch and Saurashtra were the worst hit with over 70 per cent deficient rainfall reported, in first spell of monsoon.
However, now the situation has changed somewhat in the last fortnight with rains lashing the state.
Hit by crop failure, several farmers mainly from Saurashtra region had committed suicide.
Opposition Congress has made farmers suicide a major issue ahead of the polls in Gujarat, accusing the ruling BJP government of inaction.
