India, April 16 -- Struggling with financial instability, the Maharashtra government is trying to reduce expenditure wherever it can. This time it has decided to reduce the interest due to farmers for any delay in compensation for their land acquired for government projects.

The government, which was previously giving from 8% to 15% interest, has decided to make the interest rate uniform by making it 1% higher than the repo rate applicable to banks. The decision was taken in the state cabinet meeting held on Tuesday, and it will affect farmers whose land is acquired for government projects.

The government said that the decision would not only help in reducing the financial burden on the state exchequer but also the cost of the project. ...