Andhra seeks Rs.1,550 crore for cyclone relief

Andhra Pradesh has sought Rs.1,550 crore from the central government for relief in areas affected by cyclone Nilam.

Addressing the meeting of chief ministers and finance ministers of the five southern states in Bangalore Tuesday, Andhra Chief Minister N. Kiran Kumar Reddy called for early release of funds for cyclone relief work.

"Due to Nilam cyclone, around 20 lakh acres of standing crop has been damaged. The state has taken immediate relief measures and the loss caused by the cyclone has been assessed preliminarily at about Rs.1,550 crore," he said.

Chief Minister Reddy thanked the central government for increasing crop loans target by Rs.1 lakh crore and called for extending interest subvention scheme to rescheduled crop loans.

He told the meeting that the state introduced interest-free crop loans up to Rs.1 lakh which will benefit one crore farmers.

Reddy requested the chairmen of banks to meet the credit requirements of the deserving sections. He urged the bank to take steps to fill up the credit gap to the minorities.

He also pointed out that banks have exceeded the targets set under the credit plan during the past three years in the state.

The credit plan target for the year 2012-13 is Rs.82,167 crore under the priority sector lending with an overall target of Rs.110,945 crore.