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Maharashtra approves proposal to up contingency fund by Rs. 962 crore

The Maharashtra government approved a proposal on Wednesday to increase the limit of contingency fund by Rs. 962 crore ‘on a temporary basis’ from the current from Rs. 150 crore to enable it to extend adequate financial relief to farmers.

Of this amount, Rs. 630 crore will be for disbursing aid to farmers under the crop insurance scheme, and Rs. 281 crore will be to assist farmers affected by unseasonal rains in February and March this year, a state government official told a news agency.

Remaining Rs. 51 crore have been allocated for various other schemes, the official added.

The decision was taken at a meeting of the state cabinet, chaired by Maharashtra Chief Minister Devendra Fadnavis here, the official said.

Though the fund limit has been set at Rs. 150 crore, there are instances when it is raised in view of unforeseen events like natural disasters, the official said.

Last year, the then Congress-led government in the state had raised the contingency fund limit to provide relief to farmers suffering crop losses due to hailstorm, to Rs. 2,500 crore.

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