Unlike neighbouring States, Karnataka has consistently failed to utilise funds under the Rural Infrastructure Development Fund (RIDF) of the National Bank for Agriculture and Rural Development (NABARD) over the years.
Tamil Nadu, Kerala and Andhra Pradesh have fared much better in utilising RIDF funds, G.R. Chintala, Chief General Manager, NABARD, Karnataka, told presspersons here on Monday.
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Since the launch of RIDF in 1995-96, the State government has got a cumulative sanction of Rs. 10,008 crore, while the disbursement was Rs. 7,051 crore. Despite several reminders from NABARD, the government has not been fully drawing higher amounts under the RIDF, he said.
The State has drawn its highest ever single year funds of Rs. 708 crore in 2014-15, which is just 45 per cent of the total sanction at Rs. 1,560 crore.
Bihar, Rajasthan and even Telangana have drawn much higher amounts in 2014-15 compared to Karnataka.
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Bihar has taken the highest amount of Rs. 2,500 crore, while the new State, Telangana, has drawn Rs. 2,000 crore.
Low rate of interest
“We don’t understand why Karnataka has not taken funds, which come at such a low rate of interest. For FY15, the State has drawn its highest amount after we told them that the sanction limit will come down,” Mr. Chintala said.
Milk dairy
To tap potential in milk dairy, NABARD has sanctioned Rs. 16 crore for the Dakshina Kannada District Milk Union and Rs. 56 crore for Mysore Milk Union, to set up processing plants, Mr. Chintala said.
Despite several reminders from NABARD, the government has not been fully drawing higher amounts under the RIDF.G.R. ChintalaChief General Manager, NABARD, Karnataka