Bangalore: Chief Minister Jagadish Shettar has informed the state assembly on Tuesday that the state government has decided to waive Rs 3500 crore farm loans of 16 lakhs farmers, along with interest in the wake of the abject drought conditions in the state.

At the same the CM made it clear that the waiver will be applicable to loans availed from co-operative societies between August 2011 to June 2012.

It may be recalled here that on Monday former CM Yeddyurappa had taken the government to task for not coming to the aid of the distressed farmers.

However, opposition leader Siddaramaiah who was not contented with the government decision, said the government, if at all it had true concern for the farmers should have waived all loans of the farmers. He dubbed the government decision as an eye wash tactic.