In PM Narendra Modi's Speech, Sops For Farmers And Poor Ahead Of Elections In UP, Punjab

New Delhi: Prime Minister Narendra Modi, in an address to the nation on New Year's Eve, announced a series of sops for farmers, the poor and small traders just ahead of key assembly elections in big states like Uttar Pradesh and Punjab. The groups he focused on today are seen as the worst hit by the cash crunch that has followed the notes ban that he announced on November 8 this year. In his speech today, he thanked people for putting up with hardship to combat corruption and black money.

In what critics have described as an election speech and even a mini-budget speech, the Prime Minister announced housing schemes for the urban poor and for villagers, higher interests for deposits made by senior citizens and more credit for small businesses. He directed banks to focus their activities on the poor and underprivileged.

Another set of announcements is expected on Monday, when the Prime Minister addresses a mega rally in Uttar Pradesh capital Lucknow. Election dates are likely to be announced for Uttar Pradesh and four other states next week and a model code of conduct that prohibits the announcement of sops will come into force from that day.

"PM Modi has given many schemes as a gift to the poor and middle class people...He had said that he will utilize the black money recovered through demonetisation and he is doing it. I would like to congratulate and thank Narendra Modi for this," said BJP president Amit Shah.

But opposition leaders said they were underwhelmed by the PM's speech. "It was like a budget speech. He did not say how much black money has been returned," said Bihar politician Lalu Yadav.

Delhi Chief Minister Arvind Kejriwal said the speech sounded "hollow".

As he defended his demonetisation drive, PM Modi struck an emotional note in his 45-minute speech today delivered first in Hindi and then in English, praising India's "125 crore people" for bearing with the pain of queuing up access their own money and saying that thousands of people had written to him about the hardships they had faced.

In the new year, the Prime Minister said, the government's effort would be to return the banking system to normal. Banks, he said, have been instructed to focus on reducing the inconvenience caused to people by the curbs on cash withdrawals since demonetisation. He, however, did not say when the restrictions on withdrawals will be lifted.

PM Modi stressed that the notes ban was aimed at the dishonest and to rid the nation of black money, and said the Indian banking system has never received such a large amount of money in a such a short time as has been deposited in old notes since the demonetisation. But he did not share any figures on the amount of old currency that has been deposited in banks after November 8.