Karnataka Budget: Agriculture & Irrigation Get a Boost, Mekedatu Project Gets Rs 1,000 crore

Basavaraj Bommai, Karnataka's chief minister, has set aside Rs 1,000 crore for the Mekedatu project, which has been a source of friction between Karnataka and Tamil Nadu. Following the opposition Congress's 165-kilometer padayatra from Mekdatu to Bengaluru, Bommai has been pressed to allocate a major portion of funding to irrigation projects to demonstrate his government's commitment to farmers.

The CM made the allocation knowing that the opposition would make it an issue ahead of the assembly elections next year, even though the project has yet to receive environmental clearance from the Centre.

The allocation for agriculture and allied sectors has been enhanced by the chief minister to Rs 33,700 crore, an increase of Rs 3,000 crore over the previous budget. This is the sector's highest allocation in the last four years. For important irrigation projects, a total of Rs 14,500 crore has been set aside.

Rs 5,000 crore has been set aside for Stage 3 of the Upper Krishna Project, and Rs 3,000 crore has been set aside for the ongoing Upper Bhadra and Yettinahole drinking water projects.

This year, the government plans to finish work on the Chitradurga branch canal up to 60 kilometres, fill 28 tanks under Upper Bhadra, and start the first phase of Yettinahole. Similarly, the Kalasa-Banduri project and the Tungabhadra balancing reservoir proposed in Koppal district have each been allocated Rs 1,000 crore.

The chief minister also proposed a budget of Rs 500 crore for tank building. Subsidies for diesel for farmers, In addition, Bommai unveiled a new programme to promote the usage of farm machines.

“Diesel subsidy of Rs 250 per acre will be given to farmers up to a maximum of five acres through DBT under a new scheme, Raitha Shakti, for which Rs 500 crore will be provided,” Bommai said.

Agriculture specialists believe the action is in preparation of a fuel price spike as a result of the Russian-Ukraine conflict's ripple effect.

In addition, the budget proposed disbursing Rs 24,000 crore in farm loans to 33 lakh farmers in 2022-23, an increase of Rs 8,000 over the current fiscal year. An additional 10 lakh farmers are projected to gain. Milk producers would be able to acquire loans through a cooperative bank called Ksheer Samruddhi Sahakari Bank.