Hyderabad: The Rs 5-lakh free insurance scheme for farmers announced by Chief Minister K. Chandrasekhar Rao recently will be implemented from June 2 on the occasion of Telangana State Formation Day.
Agriculture minister Pocharam Srinivas Reddy on Sunday held a meeting with LIC officials to finalise the modalities for the scheme.
The CM announced that there was no need for farmers to pay any premium to avail this scheme and the government itself will bear the premium on their behalf.
As per revenue records purified by the state government recently, there are nearly 72 lakh farmers in the state.
The families of deceased farmers will get Rs 5 lakh compensation in case of the death of a farmer covered under the scheme for any reason. Though the premium amount for each farmer is yet to be finali-sed, the government exp-ects it to be nearly Rs 1,000.
With this, the government needs to spend around Rs 720 crore every year towards payment of premium on behalf of farmers. The funds required for the purpose will be allotted in the Budget 2018-19.
