Special Correspondent

  • They are located in six districts identified as being `in distress'
  • Call to give priority to capital formation in agriculture

    BANGALORE: Work on 16 grant-based watershed development projects with an investment of Rs. 8.64 crore is in progress in six districts of the State.

    Addressing the State-level Bankers' Committee (SLBC) meeting here on Thursday, D.B. Gore, chief general manager, National Bank for Agriculture and Rural Development, Bangalore, said the six districts Belgaum, Hassan, Chitradurga, Chikmagalur, Kodagu and Shimoga had been identified as "districts in distress" by the Centre.

    In line with the call to double credit flow to agriculture, Rs. 7197.96 crore had been disbursed by various agencies till the end of October, 2006 as against the target of Rs. 14,645.99 crore in the present fiscal year, which was 49.13 per cent of the target, he said.

    Mr. Gore said that in order to accelerate growth, capital formation in agriculture required to be given priority, and this could be achieved through investment credit for creation of assets. While commercial banks disbursed 38 per cent of farm loans from April 2006 to October 2006, the Regional Rural Banks disbursed only 14 per cent. He said NABARD had prepared a Rs. 20,906.71-crore potential-linked credit plan for 2007-08 for the farm and rural sectors. The share of crop loans stood at 45 per cent; agricultural and allied activities, 15 per cent; non-farm sector, 11 per cent; and other priority sectors, 28 per cent.