Bangalore: As the poll scenario of synchronising Assembly elections with Lok Sabha becomes clear, Karnataka Chief Minister S M Krishna today (Feb 12, 2004) further opened flood gates of "sops", offering farm credit at 8.5 per cent interest from April 1 and setting up of a new pay commission to please its five lakh employees.

As an extension of his 2004-05 "son of the soil" Budget presented on February 5, in just a span of eight days, Krishna announced the decision to extend credit to farmers at 8.5 per cent interest rate, slashing it by 0.5 per cent, a slab offered by the Centre in its Mini-Budget.

Replying to debate on Budget discussions in the State Assembly, Krishna cheered "Government babus" setting up a one-man pay commission headed by retired judge Chinnappa to revise the pay scales of Government employees.

The Government recently awarded four per cent increase in the dearness allowance of its employees and now presented them with 6th pay commission.

Bowing to pressures from Congress leaders from North Karnataka, the Chief Minister said the Government has decided to shelve the decision to abolish the Hyderabad-Karnataka Development Board (HKDB), Malnad Area Development Board and also the Bayaluseeme Development Board and will continue these by providing higher allocation.

A new corporation, the Government had proposed to set up to address the task of developing North Karnataka region by abolishing the HKDB and other regional development boards has been put on hold.

Krishna announced slashing of deposit for farmers under "own your transformer" programme from Rs 35,000 to Rs 25,000 and the amount could be paid in three instalments.

The State Government has introduced a novel method to encourage farmers to install their own transformers to ensure they get fluctuation free power supply to their irrigation pump sets.

He said for farmers who want to get new connection for Irrigation pumps sets, they could pay Rs 25,000 in two instalments of Rs 15,000 and Rs 10,000.

To legalise the existing unauthorised connection of IP sets, farmers should pay Rs 16,500 in two equal instalments, Krishna announced.

The Government has decided to energise 4,000 IP sets under Ganga Kalyan Irrigation Scheme to benefit SCs and STs in 15 days.

In a bid to attract rural mass, Krishna said eight lakh power connections would be provided to rural houses under "Kutira Jyoti" programme at an expenditure of Rs 200 crore and all the five lakh houses built by the Rajiv Gandhi Housing Corporation would be included in the programme.

He said as per its decision to waive Rs 600 crore electricity charges dues of IP sets, the Government has directed the Karnataka Power Transmission Corporation Ltd (KPTCL) to despatch individual letters to farmers informing them that their outstanding balances have been cleared.

Under the Centrally sponsored scheme, 50,000 anganwadis would be provided with houses, he said.