By Bizodisha Bureau, Bhubaneswar, October 25, 2015 : Faced with one of the worst droughts in recent year, Odisha government has sought Rs.3,500 crore special assistance from centre to face the drought situation.

Earlier, the state government had announced a Rs.1,000 crore package to mitigate drought situation in the state.

In the meanwhile, chief minister Naveen Patnaik on Sunday said farmers of the drought-affected areas in the state need not worry about re-payment of loans as the government has taken a decision to re-schedule agricultural loans.

“The state government has already taken the decision to re-schedule agricultural loans and strong action will also be taken against unscrupulous money lenders,” Patnaik said after returning from New Delhi.

Mr Patnaik during his trip to Delhi met the union finance minister Arun Jaitely urging him for a greater share in Central assistance as compared to other eastern states in terms of its backwardness and low levels of almost all socio-economic indicators.

He told Jaitley that during 2015 kharif crops had been severely impacted in large parts of Odisha due to inadequate rainfall in July and August and about 5.32 lakh hectares of cropped area has suffered damage to the extent of 33 per cent or more.

Besides, he requested to provide interest incentive at 3 per cent for converted medium term loans to enable the affected farmers to avail the prompt repayment incentive at par with short term crop loans.

Expressing his concern that even till date about 2/3rd of the state was not covered by any Bank branch, Mr Patnaik asserted that for ensuring financial inclusion, it was necessary to have at least one Bank branch in every gram panchayat of the state.

He requested Mr Jaitley to issue directions to the Banks to provide required logistics and manpower support for opening Brick and Mortar Branches in all unbanked gram panchayats as per the schedule finalized by the State Level Bankers Committee.

He brought to the attention of Jaitley that discontinuance of Central assistance for key area development programmes including Special Plan for KBK, Backward Region Grant Fund and Integrated Action Plan for Left Wing Extremism affected Districts were severely impacting the most vulnerable groups of the backward regions of Odisha.

Chief Minister informed that the ongoing major and medium irrigation projects sanctioned in the State are suffering on account of inadequate release of funds in the past and inadequate provision made for 2015-16.

Describing his government as pro-farmer, he said the state government will make all out efforts to mitigate the sufferings of farmers and protect their interest.

“Together we have faced many calamities in the past. The farmers of the drought affected areas need not worry about re-payment of their loans. The state government is with our farmers and has all along been working to protect their interests,” he remarked.

The government has decided to provide assistance to the farmers facing 33 percent and above crop loss in the state.

More than 30 farmers are reported to have committed suicide in the state due to crop loss and loan burden in past months.