(HT)
The government on Wednesday approved continuation of Modified Interest Subvention Scheme (MISS) for 2025-26 under which farmers get short-term credit at affordable rates through Kisan credit card (KCC).
The decision regarding continuation of MISS for fiscal year 2025-26 with existing 1.5 per cent interest subvention was taken by the Union cabinet, informed information and broadcasting minister Ashwini Vaishnaw.
The continuation of the scheme will cost exchequer ₹15,640 crore.
MISS is a Central Sector Scheme aimed at ensuring the availability of short-term credit to farmers at an affordable interest rate through KCC.
Under MISS, farmers get short-term loans of up to ₹3 lakh through KCC at a subsidized interest rate of 7 per cent, with 1.5 per cent interest subvention provided to eligible lending institutions.
Additionally, farmers repaying loans promptly are eligible for an incentive of up to 3 per cent as Prompt Repayment Incentive (PRI), effectively reducing their interest rate on KCC loans to 4 per cent.
For loans taken exclusively for animal husbandry or fisheries, the interest benefit is applicable up to ₹2 lakh.
An official release said that no changes have been proposed in the structure or other components of the scheme.
There are more than 7.75 crore of KCC accounts in the country.
The continuation of the support is critical to sustaining the flow of institutional credit to agriculture, which is vital for enhancing productivity and ensuring financial inclusion for small and marginal farmers, the release said.
Institutional credit disbursement through KCC increased from ₹4.26 lakh crore in 2014 to ₹10.05 lakh crore by December 2024.
Overall agricultural credit flow also rose from ₹7.3 lakh crore in 2013-14 to ₹25.49 lakh crore in 2023-24.
“Given the current lending cost trends, median MCLR (Marginal Cost of Funds-based Lending Rate) and repo rate movements, retaining the interest subvention rate at 1.5 per cent remains essential to support rural and cooperative banks and ensure continued access to low-cost credit for farmers,” the release said.
It further said the Cabinet’s decision reinforces the government’s unwavering commitment to doubling farmers’ income, strengthening the rural credit ecosystem, and boosting agricultural growth through timely and affordable credit access.
Additionally, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved two multi-tracking railway projects to ensure faster transportation of both passengers and goods, the government said on Wednesday.It added that these projects include the third and fourth line between Ratlam-Nagda and fourth line between Wardha-Balharshah.
According to a government statement, the total estimated cost of the projects is Rs 3,399 crore and will be completed by 2029-30.
“The projects are result of PM-Gati Shakti National Master Plan for multi-modal connectivity which have been possible through integrated planning and will provide seamless connectivity for movement of people, goods and services,” the press note said.
It added, “The two projects covering four districts across the states of Maharashtra, and Madhya Pradesh, will increase the existing network of Indian Railways by about 176 km. The proposed multi-tracking project will enhance connectivity to approx 784 villages having a population of about 19.74 lakh.” Railway Minister Ashwini Vaishnaw said that these two projects will give a boost to infrastructure in the country in the Delhi-Mumbai and Delhi-Chennai economic corridors, removing the traffic bottlenecks.He added that during the third term of the Modi government, projects worth more than Rs 4.5 lakh crore have been approved in the transport and infrastructure sector in the country.
The government said that these are essential routes for transportation of commodities such as coal, cement, clinker, gypsum, fly ash, containers, agriculture commodities, and petroleum products etc, hence the capacity augmentation work will result in additional freight traffic of magnitude 18.40 MTPA (million tonnes per annum).
Outlining the environmental benefits, it said that the railways, being environment-friendly and energy-efficient mode of transportation, will help in achieving climate goals and minimising logistics cost, reduce oil import (20 crore litres) and lower CO2 emissions (99 crore kg) which is equivalent to plantation of 4 crore trees.
“The projects will also generate direct employment for about 74 lakh human-days during construction. These initiatives will improve travel convenience, reduce logistic cost, decrease oil imports and contribute to lower CO2 emissions, supporting sustainable and efficient rail operations,” the government said.
“The projects would also enhance logistical efficiency by augmenting line capacity along critical routes for transportation of containers, coal, cement, agricultural commodities, and other goods. These improvements are expected to optimise supply chains, thereby facilitating accelerated economic growth,” it added.
Talking about other benefits, the press statement said that the increased line capacity will significantly enhance mobility, resulting in improved operational efficiency and service reliability for railways.
“These multi-tracking proposals are poised to streamline operations and alleviate congestion,” the press note said.
