Only 54 per cent of amount earmarked for agricultural development
Of the total outlay of Rs. 1,203. 21 crore, Rs. 654.96 crore earmarked for crop loans
Raichur: The District Annual Credit Plan for 2010-11, which was released by the Lead Bank, State Bank of Hyderabad, here on Saturday, has an outlay of Rs. 1,203.21 crore, an increase of 12 per cent from last year's outlay. However, only 54 per cent of the plan amount has been earmarked for the development of agriculture.
Under the Potential Linked Plan (PLP) of the National Bank for Agriculture and Rural Development (NABARD), the bank's credit flow for 2010-11 will be Rs. 1,203.21 crore as against the projected outlay of Rs. 1,258.44 crore.
There will be a shortfall of Rs. 55.23 crore, which will be met by way of subsidy, margin money, and private investments.
Releasing the credit plan, Deputy Commissioner V. Anbu Kumar said that the bank had identified agriculture as the thrust area in the district. But it should give more attention to fulfilling farmers' needs as agriculture was the base for economic development of the district.
They should reserve adequate funds for crop loans. Chief executive officer of the Raichur Zilla Panchayat Sameer Shukla, who was the chief guest at the function, said that he did not understand the basis on which the bank had decided to restrict advances towards crop loans.
Of the total outlay, it had reserved only 54 per cent share towards agriculture which was a meagre amount. Of the total outlay of Rs. 1,203.21 crore, Rs. 654.96 crore has been earmarked for crop loans.
A sum of Rs. 242.76 crore has been reserved to provide term loans for other farm activities, including minor irrigation, land development, animal husbandry and related activities, giving emphasis to storage and improvement of market yard.
The sector-wise projections for for industries is Rs. 108.66 crore and for the service sector its Rs. 192.33 crore. Following is the block-wise share: Raichur - Rs. 350.51 crore; Deodurga - Rs. 91.07 crore; Manvi - Rs. 250.89 crore; Lingsugur - Rs. 102.06 crore; and Sindhanur - Rs. 408.69 crore.
Thirty-one banks and other financial institutions, including gramin banks, cooperative banks and the Karnataka State Financial Corporation, will share the outlay.
The Pragati Gramin Bank, affiliated to Canara Bank, with 53 rural branches in the district is the major contributor with 384.83 crore the State Bank of Hyderabad has contributed Rs. 220.37 crore giving priority to crop loans and the service sector, and the Raichur District Central Cooperative Bank has contributed Rs.114 crore for crop loans out of a total contribution of Rs. 120 crore.