Badal asks Nabard to dole cheaper loans

He demanded to immediately slash the rate of interest on the Nabard's refinance from 4.5% to 2.5% to boost the rural economy

Punjab Chief Minister Parkash Singh Badal on Friday asked the National Bank for Agriculture and Rural Development (Nabard) to provide finance to the allied farming sector at interest on a par with agriculture. This would be to give impetus to agriculture diversification program.   

He also demanded a rate cut on refinance from 4.5 per cent to 2.5 per cent.

On the 32nd foundation day of Nabard here, Badal said Nabard had been providing refinance at 2.5 per cent, now increased to 4.5 per cent. He said a rate cut would make the Primary Agriculture Cooperative Societies (PACS) viable and enable the state to convert PACS to multi-purpose cooperative societies by adding farmer friendly services.  

Badal also urged Nabard to do away with the cap of Rs 30 lakh for house loan and Rs 1 lakh for repair/renovation/enhancement loan. He asked the Nabard to work out a scheme to arrest the growing trend of migration from rural to urban area, by giving the rural economy a boost.    

Appreciating Nabard for providing concessional funds under the Rural Infrastructure Development Fund for upgrading rural infrastructure, Badal said Rs 495 crore had been earmarked for the current financial year and demanded the amount to at least be doubled.

Showing concern over the 22 per cent decline in the share of agriculture and allied sector in the gross state domestic product, despite rapid progress in agriculture, Badal called on the Nabard to play a proactive role.

The minister also said the state had initiated computerisation of all the cooperative banks to make those competitive with other banks.