Watersheds project opens low-risk credit opportunities for banks

Workshop on February 24 for South bankers

Published - February 21, 2011 08:59 pm IST - MADURAI:

Thousands of hectares of land that had been lying idle for years in Tamil Nadu have been made cultivable through major interventions under watersheds development project of National Bank for Agriculture and Rural Development (NABARD).

Being implemented in Tamil Nadu since 2001, around 160 watershed development projects are under way in various districts. In the eight southern districts covered by Madurai Watersheds Unit, 85 schemes are being executed, covering 85,000 hectares.

The completed projects have transformed villages and made the lands fertile through measures such as soil and moisture conservation, adequate availability of surface and sub-surface water, besides replenishment of groundwater table. Substantial areas have been brought under cultivation and productivity has increased in rain-fed areas.

These facts have been confirmed and corroborated by independent assessments and studies, according to NABARD Assistant General Manager R. Shankar Narayan.

With a view to showcasing these developments and project the beneficiary villages as having potential for minimum-risk credit opportunities, a three-day workshop on ‘Post-watershed approaches for banks' would be held here from February 24, he told The Hindu here on Monday.

“We will be inviting bank branch managers and Agriculture Extension/Field Officers of commercial banks and Regional Rural Banks from six southern districts. Credit flow is high priority for us as it is vital for sustainable agriculture,” he added. Faculty support would be provided by NABARD Regional Training Centre, Mangalore.

S. Natarajan, Deputy General Manager, NABARD Watersheds Unit, which covers eight southern districts, said that the objective of the workshop was to help augment credit flow to rain-fed areas. In these areas, an inherent risk existed in agriculture as farmers were solely dependent on rains and lacked adequate irrigation infrastructure.

“Now with this holistic development through watersheds, farmers can get assured crop harvest and high productivity and increase in cropping intensity, thereby boosting credit demand,” he said.

While day one would see theory sessions outlining development activities, a field visit to Nilakottai in Dindigul district has been scheduled for day two. “The bankers will be taken to see two successful watershed projects and assess for themselves their impact through interaction with villagers. Formulation of an action plan for credit flow and financial inclusion will be done on the last day,” he said.

Banks officers from Madurai, Theni, Ramanathapuram, Sivaganga, Virudhunagar and Tuticorin districts would be invited.

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