The Hindu Business Line : Nabard projects Rs 29,423 cr for priority sectors in AP

THE National Bank for Agriculture and Rural Development (Nabard) has projected a potential of Rs 29,423 crore for agriculture and allied activities and other priority sectors in Andhra Pradesh during 2005-06.

The projection represents a growth of 30.5 per cent over the credit potential identified last year, according to a State Focus Paper prepared by the bank.

The State stood first in RIDF (Rural Infrastructure Development Fund), self-help group financing, production credit and formation of farmers' clubs during the year.

Briefing newspersons on Nabard's performance in Andhra Pradesh, Mr J.R. Sarangal, Chief General Manager (Regional Office, Andhra Pradesh), said the bank had been asked by the Centre to monitor the flow of ground level credit.

This was to ensure doubling of credit for agriculture in the next three years. The target for 2004-05 had been put at Rs 14,187.55 crore. The bank could achieve 70.5 per cent of the target by December.

The total credit support from the bank to the State was put at Rs 3,480.93 crore, showing a growth of 23 per cent over last year's figure.

As part of the plan to double credit to agriculture, the bank had taken up several measures including a pilot project for financing Rythu Mitra groups and preparation of ten area development schemes. Development of model projects in thrust areas such as organic farming, medicinal and aromatic crops and bio diesel plantation also formed part of the plan.

Responding to the severe financial crisis faced by the farming community, the bank provided liquidity refinance support of Rs 521.71 crore to APCOB (Andhra Pradesh State Cooperative Bank) and Rs 79.59 crore to four RRBs (Regional Rural Banks) in the State.

Under the Kisan Credit Card Scheme, a total of 62 lakh cards had been issued so far. Of this, cooperative banks and RRBs issued 43.66 lakh cards and commercial banks 18.34 lakh cards.

Under the tenth tranche of RIDF, the State got loans to the tune of Rs 1,560.86 crore, 20 per cent of the aggregate figure for the entire country, for improving critical rural infrastructure.

This included Rs 236.17 crore for providing livelihood opportunities for people belonging to scheduled castes and scheduled tribes in 856 mandals.

During the year, the bank launched a pilot project at Tandur mandal in Mahboobnagar district to achieve economic development in an integrated manner.

"The idea is to develop a replicable model," he said.

Rythu Mitra groups, yet another pilot project, too was initiated during the year. Over 4,000 groups comprising 62,000 farmers were covered.

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