A ministerial panel has decided to increase the number of guaranteed work days under Mahatma Gandhi National Rural Employment Guarantee Act(MGNREGA) to 150 days for one year and cut interest rates on crop loans to 7 percent for one year, according to sources. These decisions were approved by the EGoM on drought headed by Agriculture Minister Sharad Pawar to offer some relief to farmers in drought-affected states.
Four states—Karnataka, Gujarat, Maharashtra and Rajasthan—have declared drought in many sub-divisions. Monsoon deficiency in the country now stands at 9 percent.
Finance Minister P Chidambaram, Petroleum and Natural Gas Minister S Jaipal Reddy and Urban Development Minister Kamal Nath, are also members of the EGoM.
MGNREGA is the scheme in which the government assures 100 days of work every year to each household in rural areas.
Generally, people avail of the benefit under the scheme during the off-season for agriculture. The government has provided Rs 33,000 crore to implement the scheme this fiscal, as against Rs 31,000 crore in 2011-12.
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