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Updated: June 5, 2013 15:31 IST

Kiran asks banks not to recover dues from input subsidy

Special Correspondent
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Banking on schemes: Chief Minister N. Kiran Kumar Reddy addressing the State Level Bankers' Committee meeting in Hyderabad on Tuesday. Photo: Satish H
The Hindu
Banking on schemes: Chief Minister N. Kiran Kumar Reddy addressing the State Level Bankers' Committee meeting in Hyderabad on Tuesday. Photo: Satish H

Chief Minister releases Rs.1,33,074 crore annual credit plan for 2013-14

Chief Minister N. Kiran Kumar Reddy has emphatically asked the bankers not to adjust input subsidy given by the government to the farmers towards crop loan recovery.

“The input subsidy substantially increased to Rs.10,000 per hectare is given to those farmers who suffered losses due to Nilam cyclone and drought last year and is meant as capital for fresh crops. As the amount is transferred online, banks should expedite opening no frills accounts for farmers”, he said while addressing the State level Bankers Committee meeting here on Tuesday.

Even in the case of interest free loans given to farmers, some banks were demanding interest from farmers against the norms, he observed. The government had already released Rs.118 crore towards interest on loans that were repaid by farmers on time.

Seeking greater cooperation from bankers, Mr. Kiran Reddy said they should gear up to support the government planning to extend direct subsidies to the tune of Rs.22,000 crore to priority groups like farmers, licensed cultivators, youth, Self Help Groups, fair price shop dealers under various schemes. A meeting would be convened with bankers next month to chalk out how to go about it, he added.

The Chief Minister released the Rs.1,33,074 crore annual credit plan for the year 2013-14 with Rs.99,894 crore target lending for priority sector. The total priority sector outlay – Rs.67,224 crore for the farm sector and Rs.11,316 crore for the non-farm sector (SMEs, housing etc.,), was projected with an increase of Rs.17,727 crore over that of last year’s target.

Last year against the target of Rs. 82,167 crore advances to the priority sector, Rs.99,534 was achieved, registering 121 per cent increase. “Our achievement this year will be even more,” he said.

Revenue Minister N. Raghuveera Reddy said banks should expedite giving loans to licensed cultivators and a day in a week dedicated as loan day for licensed cultivators.

Finance Minister Anam Ramanarayana Reddy asked bankers to finance godown capacity expansion, solar power based pumpsets for farmers. Insurance coverage should also be given to non-loanee farmers.

B. A. Prabhakar, CMD, Andhra Bank and president, SLBC, asked for integration of land records with banking system and sought government help in seeding of bank accounts with Aadhar numbers in a campaign mode.

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