Nagesh Prabhu

Bank allocates Rs. 655. 88 crore for agricultural sector in Shimoga district

Rs. 153 crore has been set aside for crop loans

in Chickaballapur

Bangalore: The National Bank for Agriculture and Rural Development (NABARD) has drawn up district credit plans for Shimoga and Chickaballapur districts and set aside an outlay of Rs. 1,493.88 crore and Rs. 347 crore for 2010-11, respectively.

The NABARD noted several challenges in the agricultural sector in Shimoga district, which is one among the six debt-stressed farmers’ districts, and allocated Rs. 655.88 crore, accounting for 43.90 per cent of the total projections, while agricultural term loans constituted Rs. 262.83 crore (17.59 per cent), Venkatesh Tagat, Chief General Manager, NABARD, Bangalore, told The Hindu.

The district has seven taluks and 1,443 inhabited areas and it is predominantly agrarian with a few major/minor industrial units. Non-farm sector at Rs. 90.92 crore and other priority sectors at Rs. 484.25 crore accounted for 6.09 per cent and 32.42 per cent respectively of the total projections.

C.S. Somashekar, Assistant General Manager, said the credit plan for Chickaballapur had been prepared after taking into account infrastructure, thrust areas identified for development, and strengths and weaknesses of the financing institutions in the district.

The potential credit plan has set aside Rs. 240 crore for agriculture, accounting for a major share (69 per cent) in the total credit of Rs. 347 crore. Of the Rs. 240 crore, Rs. 153 crore has been set aside for crop loans, Rs. 4.25 crore for water resources, Rs 4.04 crore for land development, Rs.18.16 crore for farm mechanisation, Rs.11.00 crore for plantation and horticulture, Rs.14.38 crore for sericulture and Rs.25.29 crore for animal husbandry.