The potential for Ground Level Credit Flow (GLC) for 2019-20 in Kannur district is estimated at ₹13,491.41 crore as against ₹12,856.62 crore during 2018-19.
A press release briefing the proceedings at the district-level review meeting held by the Lead District Bank here on Monday said that the GLC is higher than the District Annual Credit Plan target for the year 2018-19 by 15%.
Crop production has a share of 30% in the total projection and the share of term loans in total agriculture is 29.5%.
Farm income
The higher projection is taking into consideration the aim to double the farmers’ income by 2022 as increased term lending in agriculture will lead to long-term capital formation leading to better farm incomes on a sustainable manner, the release said.
With the implementation of the RuPay credit card and the ongoing Kisan Credit Card scheme by banks as well as liberalisation of agricultural credit, off-take of crop loans may improve, it added.
Short-term crop loans
The Potential-linked Credit Plan (PLP) of the district envisages the GLC flow to the tune of ₹2,855 crore by way of short-term crop loan. Term loans for allied sectors, including agriculture infrastructure and ancillary activities is projected at ₹1,358 crore.
The credit potential for Micro, Small and Medium Enterprises (MSME) sector is estimated at ₹1,590 crore, the release said.
Number of projects
Under the Rural Infrastructure Development Fund, the total number of projects sanctioned in the district since inception is 604 with an aggregate sanctioned loan amount of ₹835.85 crore.
Out of the 604 projects sanctioned, 359 were already completed and remaining are under various stages of completion, it said.
The critical infrastructure requiring attention of the State government in the district include irrigation, education, rural connectivity and soil conservation, among others.
Farmers’’producer body
The release said the National Bank of Agricultural and Rural Development is in the process of promoting several farmers producers’ organisations to ensure better income for the producers through an organisation of their own through direct marketing and processing of farm produce.
Releasing the PLP during the meeting, District Collector Mir Muhammed Ali urged bankers to take steps to exploit the potential envisaged in the credit plan.
The Collector also requested the bankers and other stakeholders to explore opportunities and business potential in various sectors, including in rural tourism in the wake of commencement of commercial operations of Kannur International airport.
