The Hindu Business Line : Banks urged to cut rates for ongoing farm projects

Mr M.S. Kapur, Chairman and Managing Director, Vijaya Bank, waiting in front of the head office to receive the delegates on the occasion of the bank's 73rd Founders' Day celebration in Bangalore on Saturday. - G.R.N. Somashekar

Bangalore , Oct. 23

THE Karnataka Water Resources Minister, Mr Mallikarjuna Kharge, on Saturday urged banks to extend support to the Government through reduced rate of interest for speedy completion of various ongoing irrigation projects.

Banks, both in private and public sector, could work out a plan for adopting such projects for funding under a competitive rate of interest for fast track implementation and minimise the cost overruns.

Speaking at the 73rd Founders' Day Celebration of Vijaya Bank here, Mr Kharge said about 50 irrigation projects required about Rs 25,000 crore for their completion.

"Since loans taken for previous projects too have to be repaid, we will require up to Rs 9,000 crore every year for the financing of irrigation works," Mr Kharge said.

The State Agriculture Minister, Mr K. Srinivasa Gowda, wondered that when the housing sector could be provided loans at 6 to 8 per cent, why the agriculture sector should be charged an exorbitant rate of 17 per cent. He attributed the farmers' suicide to the inaccessibility of institutional credit system and the high rate of interest.

The Vijaya Bank Chairman and Managing Director, Mr M.S. Kapur, recalled the contribution of one of the founders, the late Mr Sunder Ram Shetty, through his visionary leadership in building the bank from a modest district level to a national financial institution.

The former Chairman and Managing Director of the Bank, Mr K. Sadananda Shetty, recollected the contribution of the bank in developing the entrepreneurial spirit of the people of South Kanara district.

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