Livestock insurance in 100 districts

The government has approved livestock insurance scheme for implementation in 100 districts on pilot basis during 2005-06 and 2006-07 while its extension in eleventh five-year plan depends on the performance in the two years.

Hundred districts selected would be those where livestock is a potentially important source of income supplementation and where special efforts are being made to introduce cross breed and high yield cattle, the cabinet committee on economic affairs took the decision at its meeting held on Tuesday night.

The scheme targets to insure 15 lakh animals with an estimated expenditure of Rs 120 crore (Rs 1200 million), Union Finance Minister P Chidambaram said.

The scheme has been formulated with dual objectives to protect farmers against any eventual loss of animals and to demonstrate the benefit of the scheme with an aim to attain qualitative improvement in livestock.

Considering the poor economic status of livestock owners, the government will subsidise 50 per cent of the premium.  "The entire cost of subsidy would be borne by the central government," Chidambaram said.

Subsidy in premium will be restricted to two animals per beneficiary and will be given for one time insurance of an animal up to a maximum period of three years, he said.

The private sector insurer will also be encouraged to participate in the scheme, thereby, providing scope of getting competitive premium rates, he said.

The State Livestock Development Boards are already implementing the centrally sponsored scheme of 'National Project for Cattle and Buffalo Breeding' in various states, he added.