NEW DELHI, Nov 29: Karnataka Chief Minister Siddaramaiah on Friday met Prime Minister Narendra Modi and requested rectification in short-term farm loan limit, Rs 10,000 crore in financial support and urgent clearances for the Mekedatu Balancing Reservoir and Kalasa Bandhuri projects.
In the meeting in Parliament complex, Siddaramaiah pressed for several key interventions focusing on critical areas, including agriculture, water resources and urban infrastructure.
Deputy Chief Minister and Irrigation Minister D K Shivakumar, Energy Minister K J George and Urban Development Minister Byrathi Suresh accompanied Siddaramaiah to the meeting.
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Speaking to reporters after the meeting, the Karnataka chief minister said, “We provide credit to 35 lakh farmers. The drastic cut in the short-term agricultural credit limit will impact the agriculture sector and force farmers to depend on private lenders.”
NABARD has reduced the Short-Term Agricultural Credit Limit for Karnataka from Rs 5,600 crore in 2023-24 to just Rs 2,340 crore in 2024-25, a 58 per cent reduction that could severely impact farmers’ access to soft loans, he said.
“I have requested the PM to look into this and direct the Finance Ministry to rectify this situation so that farmers in Karnataka continue to receive soft agricultural loans,” Siddaramaiah said.
Not only Karnataka farmers, but farmers across the country are impacted by this as the NABARD has cut the short term agri-credit limit across the country, he added.
Siddaramaiah requested Rs 5,300 crore for the Upper Bhadra Project, which promises to irrigate central Karnataka’s drought-prone farmlands. The project has been pending since the 2023-24 Union Budget.
He also pushed for clearances of two critical water projects — the Mekedatu Balancing Reservoir on the Kaveri river and the Kalasa Bandhuri project on the Mahadayi river — both awaiting approvals from the Jal Shakti and Environment ministries.
Highlighting Bengaluru’s status as a tech hub and top GDP contributor, the state requested special assistance for urban and public transportation.
Additionally, Karnataka sought Rs 10,000 crore to develop infrastructure in 13 emerging city corporations.
On fiscal allocation, the chief minister complained of receiving an unfavourable deal from the 15th Finance Commission, which reduced its tax share by 1 per cent.
Siddaramaiah urged the Centre to provide compensation grants and ensure future finance commissions do not penalise states with significant tax contributions.
The Karnataka chief minister also met Congress leader Priyanka Gandhi Vadra and congratulated her on being elected as an MP from Wayanad. (PTI)
