Bihar govt draws Rs570 crore for diesel subsidy for farmers

The Bihar government today sanctioned withdrawal of Rs570 crore from the contingency fund towards diesel subsidy for farmers as chief minister Nitish Kumar sought more central funds and additional electricity from the central pool for tackling  drought in the state.

The state cabinet gave the nod to advance withdrawal of Rs570 crore from the contingency fund for the subsidy for saving standing maize and paddy crops, official sources said.

Kumar who had met the six-member central team that toured drought-affected districts yesterday, said the state was facing drought for the second successive year. "We want more central funds to generate jobs in the drought hit districts under MNREGA.

The chief minister said that without central assistance it would be difficult to fight drought.

The central team which visited 16 of the 28 districts declared drought-hit by the state government found the situation grave, the sources said.

The team was sent by prime minister Manmohan Singh following a request by Kumar when he met him last week. Kumar had sought a financial package of Rs5000 crore to tackle the problem.

The team was informed of loss of 50% kharif crop because of scanty rainfall.

Magadh and Patna divisions were worst affected with the water table depleting.