The Hindu Business Line : Nabard increases aid to farm sector by 19 pc in Karnataka

Briefing reporters here today, Mr B.B. Mohanty, Nabard's Chief General Manager, said that the assistance provided to the State during the last fiscal was Rs 2,196 crore as against Rs 1,842 crore in 2003-04.

Of this, he said direct refinance assistance to banks in Karnataka was Rs 1,763 crore last fiscal, a 15 per cent increase over the previous year. In addition, Nabard also provided direct assistance to the Karnataka Government for policy and promotional interventions equivalent to Rs 421 crore.

He said that the bank also extended liquidity support to two rural banks in the State — the Bijapur District Co-operative Bank and the Malaprabha Grameena Bank. This assistance was provided for meeting the liquidity gap for meeting the requirements of the relief package announced by the Centre last year.

In addition, Nabard has also taken up co financing arrangements with Bank of Baroda, Andhra Bank and the private sector ING-Vysya Bank involving a gross outlay of Rs 41.21 crore, he said.

The assistance to the State also included Rs 478 crore sanctioned towards investment credit covering activities aiding capital formation in both farm and non-farm activities, he said.

About 72 per cent of this assistance was for direct farm activities and the remainder for non-farm activities.

Nabard, he said, had also taken the initiative in promoting contract farming under the notified agriculture export zones programme. Three such AEZs, for farming rose onions, gherkins and floriculture were under implementation. One more was being taken up for vanilla cultivation, he said.

Nabard was also widening the reach of its farm sector activities to cover more client institutions to assist high technology and export-oriented units especially projects with large outlays.

The arrangements would take root during this financial, he added.

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