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The money would go towards augmenting supply of drinking water and fodder, and subsidising seeds, he said.
There had been 52 per cent deficit rainfall in the state affecting 941 villages out of a total of 1,126, while 'almost all tanks had dried up' and water levels in irrigation wells had fallen sharply resulting in reduction in the cultivation of paddy and other crops, Naidu told the state assembly.
"The inflow into nine major reservoirs is practically nil at this point of time and it appears that there is no hope of getting the required quantity of water in the near future," he said.
Replying to a marathon seven-hour long debate in the assembly over the 'adverse seasonal conditions', Naidu said the Centre had 'in principle' agreed to provide an additional one million (10 lakh) tonnes of rice to the state under the 'Food for work' programme.
As members, cutting across party lines, voiced serious concern over the situation in the state, the chief minister said a contingency plan had been put in place to tackle the emerging situation and asserted his government would spare no efforts to protect the interests of farmers.
The opposition Congress members demanded rescheduling of co-operative loans availed of by farmers and stoppage of collection of power bills from farmers in drought-hit areas.
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