The Hindu Business Line : Nabard pegs Rs 22,538-crore credit in AP for next fiscal

THE State Focus Paper prepared by the National Bank for Agriculture and Rural Development (Nabard) has projected Rs 22,538 crore of potential for investment in agriculture, allied activities and other priority sector activities in Andhra Pradesh during 2004-05.

In a press release here, the Nabard Chief General Manager, Mr J.R. Sarangal, said the projected investment potential represents a growth of 19.46 per cent over the potential identified for the previous year.

While crop production found a potential of Rs 11,005.72 crore, representing a growth of 13.85 per cent over the previous year, term investment for agriculture and allied sector stood at Rs 2,897.54 crore (24.43 per cent growth), taking the total investment in agriculture and allied sector to Rs 13,903.26 crore, up by 15.9 per cent.

In the non-farm sector, the investment potential was placed at Rs 3,510.72 crore (19.07 per cent growth), other priority sector at Rs 4,192.25 crore (26.34 per cent), while potential for self-help groups was estimated at Rs 931.75 crore, representing an increase of 54.21 per cent.

According to Mr Sarangal, Nabard has conducted the State Credit Seminar here on Wednesday for discussion on the credit potentials identified by them for flow of credit from banks in the State. The credit flow estimates were prepared on the basis of the potential linked credit plans for each of the 22 rural districts in the State prepared by Nabard annually.

Releasing the State Focus Paper 2004-05, the Panchayat Raj and Rural Development Principal Secretary, Mr M. Samuel, requested the forum to identify methods for creating the potential for development, especially in the backward districts.

Commending the efforts of Nabard in identifying potential available in the districts, the Planning Department Principal Secretary, Mr A.K. Parida, emphasised the need to identify the distinctive strength of each mandal and district and linking it to credit plans that could facilitate and accelerate credit flow to priority sector.

The State Finance Secretary, Ms Veena Ish, observed that out of Rs 70,810 crore of ground level credit flow in the country during 2002-03, Andhra Pradesh alone has absorbed credit of Rs 14,539 crore, constituting 20.5 per cent. However, she voiced her concern on the declining share of agriculture credit in the total portfolio, more so in agriculture term loans.

Mr Sarangal called upon the bankers to step up flow of investment credit in agriculture and support private capital formation in agriculture for sustained growth. The Nabard CGM has also asked the bankers to explore the possibilities of financing area development schemes and contract farming in agri-export zones.

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