EGoM cut down the loan interest rate to 7 percent in the drought affected areas

The EGoM (Empowered Group of Ministers) on 11 September 2012 declared to slash down the interest rate from 10 to 12 percent to 7 percent in the entire 350 drought hit Talukas of the four states namely, Gujarat, Maharashtra, Rajasthan and Karnataka. They also came up with a declaration of providing additional 50 days of work guarantee to that of 100 days under MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) to the registered households. The decision will be applicable for a period of one year from the day of announcement. The decisions made in the meet, are subject to be practiced in the drought affected areas only. There is a total of 8 percent deficiency in the monsoon to that of the 20 percent recorded in the first four months of the season.

The EGoM is headed by Food Minister K V Thomas, Agriculture Minister Sharad Pawar, Home Minister Sushil kumar Shinde and Urban Development Minister Kamal Nath. In the current financial year government has provided Rs 33,000 crore budget for MGNREGS to make sure that everyone gets a justifiable employment opportunity of 100 days.

EGoM during its last meet in June 2012, declared a relief budget of 2000 crore for the drought hit areas along with the subsidy on diesel.