National Bank for Agriculture and Rural Development (Nabard) is annoyed at delay in execution of funded schemes in the State.
In a veiled warning, it has told the State Government to get its act together or be prepared to face the consequences.
“We have been accommodative with respect to sanctioning of loans for Rural Infrastructure Development Fund (RIDF) schemes. But implementation by various agencies has been far from encouraging,” chief general manager for Nabard-Kerala said.
The apex bank has sanctioned Rs 1,262 crore in respect of 1,182 ongoing projects in the State with a total outlay of Rs 2,767 crore.
During the current year, it has already sanctioned Rs 738.36 crore and another Rs 266.71 crore is in the pipeline. This is much more than the allocation to the State at Rs 600 crore, the chief general manager said.
But as on date only Rs 121 crore from this has been drawn for the current year, he added. This was is one of the lowest for any State as compared to what has been sanctioned.
“If the government does not get going and draw at least Rs 525 crore during the current year, Nabard may be constrained to keep in abeyance further sanction of projects in the State.”
It had written to all secretaries of implementing departments, MLAs, MPs and ministers to review projects and expedite implementation.
The chief general manager observed that despite all this, the outcome has not been to the desired extent.
DEMAND FOR MORE
As for short-term loan to cooperatives, concessional refinance of only Rs 395 crore could be disbursed against allocation of Rs 1,085 crore.
There is demand for more and more sanctions under various facilities, the chief general manager said. But when it comes to implementation and drawals, it left a lot to be desired.
Nabard has revised interest rate for loans to Kerala State Cooperative Agricultural and Rural Development Bank to 9.2 per cent and RIDF loans to State Government to 7.25 per cent.