At 76.95 per cent , farm sector has the highest share
The Potential Linked Credit Plan for Salem district for the financial year 2014-15 was released by District Collector K. Maharabushanam at the District Level Review Committee Meeting held here recently. The plan prepared by the National Bank for Agriculture and Rural Development (NABARD) projected Rs. 4,020.28 crore credit outlay under the priority sector.
This is 20.2 per cent more than the current financial year’s Annual Credit Plan for the district. The potential outlay has been projected higher in all the major segments such as crop loan, agricultural term loan, loans for the Micro Small and Medium (MSME) units and credit for other priority sectors. Of the total credit outlay, the farm sector has the lion’s share of Rs. 3,093.42 crore (76.95 per cent).
In the farm sector, crop loan takes the major share of Rs. 1,658.4 crore, which is 53.61 per cent of credit outlay for the farm sector. Rs. 1,435.01 crore (43.69 per cent) has been earmarked for agriculture term loan, which includes loan for land development, farm mechanisation, plantations, horticulture, market yard, poultry, dairy, ware house and storage facilities.
The allocation for MSME sector has been estimated at Rs. 331.96 crore, which is 8.25 per cent of the total priority sector advances. The remaining 14.79 per cent of the outlay has been set aside for other priority sectors such as retail businesses, housing loan and consumption loan.
District Development Manager of NABARD, Salem, V. Raju, said that the plan was prepared to provide insight into the potential for development in different sectors of rural economy. It also presented a road map for the extending bank credit to various important sectors and activities, he said.
“The infrastructure to be created in the near future also form a part of the PLP”, he said. Mr. Raju requested bankers to provide adequate and timely credit support for the investments under agriculture, especially under thrust areas for promotion of water conservation measures, increasing coverage and productivity of horticulture crops, value addition of surplus produce through agro and food processing strategies and more impetus to the complementary sector, animal husbandry.