P Sainath, an activist, a senior journalist, the founding editor of People’s Archive Of Rural India is attacking PM Narendra Modi and NDA on a scheme launched by them. He has alleged that Bhartiya Janta Party’s scheme of Pradhan Mantri Fasal Bima Yojana (PMFBY) is going to become a lot bigger scam than Rafale Aircraft deal.
He said on the topic, “It is a gigantic scam and if it continues for a few more years without change and in the present system, it is going to be a bigger scam than Rafale deal. It is more an insurance scheme for the banks and insurance company. It is completely public money that is getting spent without the private corporations spending any money of their own.
Pradhan Mantri Fasal Bima Yojana - the scheme is the scam. It's not about one private corporation, but over a dozen of them benefit in crores of rupees of public money.
The scheme's design ensures the syphoning off of over giant sums of public money to private corporations and to a couple of public insurers (in line for privatisation).
In the past three years over Rs. 66,000 crores of state govt. money and central govt money (i.e. public money) have been poured into the PMFBY's operations. (Apart from the premiums paid up by farmers)
'Compensation' payouts for devastated crop have been a joke. Most of that has come out of the paid premiums, is a fraction of the losses incurred, and leaves over huge sums of public money in the hands of private corporations.
At the end of the #Rafael deal you at least, presumably, get an aircraft. At the end of the PM's crop insurance scheme, you get hot air.
Those dissatisfied with their 'compensation' (ranging from Rs. 40 - 560 for loss of Soybean crop in Parbahani district) have nowhere to go. There is no dispute redressal mechanism.
Note that the CAG report. No., 7 of 2017 also has several unpleasant observations to make about the PMFBY. Including its lack of a dispute redressal mechanism. It also observes a decline in the number of farmers opting for the scheme.”