Karnataka’s Potential-Linked Credit Plans (PLPs) for XII Five Year Plan is projected at Rs 3,76,944.24 crore.
National Bank for Agriculture and Rural Development (Nabard), which has prepared the PLP for the State, has given importance for crop production, maintenance and marketing (crop loan) and allocated Rs 1,88,158.30 crore, for term investment for agriculture and allied activities (agri term loan) Rs 59,561.35 crore, for MSME (including food and agro processing) Rs 34,936.11 crore and for other priority sector Rs 94,288.48 crore.
S.N.A. Jinnah, Chief General Manager, Nabard-Karnataka, said “Nabard has undertaken PLP exercise to facilitate banks to offer scientific credit planning in tune with sectoral potential assessment on the basis of infrastructure and other linkages available in the State.”
“The process of preparation of PLPs for all the 30 districts in the State has been redesigned this year to be co-terminus with the XII Plan period (2012-2017),” he added.
The bank in tune with the theme ‘critical rural infrastructure for agriculture and rural development’ in Karnataka has prioritised last mile connectivity projects in the XII Plan like canal network and high priority projects such as watershed, model horticulture farms and nurseries, warehouse and food and millet processing.
Karnataka Chief Secretary S.V. Ranganath, who released the State Credit Plan for 2013-14, said concerted efforts of banks are needed in improving rural credit flow and assured support of state government in its implementation.
He said that fragmentation of land holdings highlights the need for ensuring inclusive growth. “Special efforts will be needed to address the low agriculture productivity especially of pulses, oilseeds and cotton in the state,” he said and opined that, weather based insurance product is necessary to mitigate the risks of dry land farmers.
Aloysius Fernandez, Chairman, NABFINS, said there is a need for ensuring equitable growth in the rural area to make financial inclusion efforts more meaningful.
Improvement in agriculture productivity and reduction of risks should be focus of the State Government and bankers. He highlighted the need for up-scaling the micro loans to small loans to enable the entrepreneurs to take up viable income generating activities.
Fernandez stressed that marketing should be a major focus area to ensure remunerative prices for the farmers. “Second Level organisations for financial scaffolding of farmers in the form of Producers Collectives on the lines of dairy cooperatives are needed for other segments in the agriculture sector,” he said.