'PM's Vidarbha package is a long-term measure'

NAGPUR: Prime Minister's financial package to farmers of Vidarbha region, which is reeling under a severe agrarian crisis, was a long-term measure and will certainly show results, Minister of State in PMO Prithviraj Chavan said.

Prime Minister Manmohan Singh had announced a package of Rs 3,750 crore during his visit to the region on June 30 and July 1 last year.

"Seventy-five per cent of the package was meant for irrigation sector which had remained neglected since long," Chavan told reporters here last night.

He said about Rs 2,100 crore is being spent on completion of small and medium irrigation projects which were pending due to resource crunch.

The PMO was in constant touch with Maharashtra government over implementation of package and was trying to know the status of progress and also the hurdles faced by it in implementation stage, he said.

About waiving off crop loan of farmers in one stroke, the minister said the Prime Minister has appointed Radhakrishan panel to suggest remedies to overcome such problems.

Chavan said the Prime Minister had announced waiving off interest on crop loan and not the capital itself in Maharashtra.