Small-scale industries (SSIs) and rural artisans in Andhra Pradesh can look forward to better funding prospects from banks during 2011-12.
The Andhra Pradesh State Credit Plan for 2011-12, released by the State-Level Bankers Committee (SLBC) here recently, has set an advances target of Rs 8,198 crore to be given to SSIs and rural artisans under non-farm sector lending.
The target for the current year is marginally higher than the Rs 8,150 crore in the previous year.
However, the actual lending could be much higher than the target. During 2010-11, the banks lent Rs 11,051 crore, which marked an achievement of 135.6 per cent over the target, as per SLBC data.
STRATEGY
The credit plan suggests a host of measures to improve lending to non-farm sectors.
“Specialised SSI branches are to be opened in the districts by the respective lead banks where there is no specialised branch,” it says.
It also calls for greater coordination among all the agencies involved in development of the non-farm sector, such as district industries centre, banks, various State Government departments, handlooms and handicraft departments and non-government organisations.
Advocating a sector-specific approach, the plan has proposed that a separate department be set up for the handicraft sector at the State level.
Improved coordination between the coconut and the coir boards would give better results, SLBC said, adding: “The banks may make use of the Swarojgar Credit Card Scheme and Artisan Credit Card Scheme for meeting the credit needs in a hassle-free, flexible manner.
WORKING CAPITAL
It has asked banks to provide adequate investment and working capital to weaver-entrepreneurs through artisan credit cards.
“Banks may also extend working capital to the good weavers cooperative societies where the district central cooperative banks are weak,” the credit plan suggests.
Banks should encourage rural entrepreneurs by offering interest-free margin money assistance by making use of aid from National Bank for Agriculture and Rural Development under its soft loan assistance for margin money scheme, it adds.
For the benefit of weavers, the annual credit plan moots a special composite scheme for acquiring raw material to eliminate middlemen.
The focus sectors for SSI units in the State are pharmaceuticals, biotechnology, food processing, chemicals, marine products, leather, textiles, information technology and communications and high-technology manufacturing, among others.