Nabard sanctions Rs 10,000 cr in Gujarat during FY 2014-15

National Bank for Agriculture and Rural Development (NABARD) had extended the highest-ever financial assistance of Rs 10,000 crore to its stakeholders like banks, state government, civil society organisations and others during financial year 2014-15 in Gujarat. It had provided Rs 8,796 crore in 2013-14.

"Nabard has sanctioned Rs 2,612 crore to the state government, which is the highest amount sanctioned to any state government in India," said M K Mudgal, chief general manager, Nabard Gujarat in a press statement. In 2013-14, Nabard had sanctioned Rs 1,800 crore to the state government.

One of the major projects covered under this assistance was the Sardar Sarovar Project. The project included construction of sub minors, which would provide last mile connectivity in canal network and provide irrigation water to 878,000 hectares in Gujarat.

Nabard had provided refinance support of Rs 5,216 crore to co-operative banks and regional rural banks (RRB) during 2014-15 as against Rs 4,497 crore in 2013-14.

"In Gujarat, for the first time, Nabard sanctioned a Rs 1,000 crore limit to Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets its products under the brand 'Amul', for supporting short term credit requirement of their affiliated district milk unions. Similarly, for the development of warehouse capacity, Nabard had sanctioned Rs 312 crores which would help farmer to store their products," said Mudgal.

It also provided refinance support of Rs 1,811 crore to all banks in respect of their financing of agriculture term loan, which was Rs 1,620 crore in previous year.

The state government in consultation with Nabard also decided to provide Kisan Credit Card (KCC) to all eligible farmers across the state before Kharif-2015.

Nabard, which is involved in credit planning and monitoring exercise, also prepared potential linked credit plans (PLPs) for each district and according to it, agriculture credit potential of the state for 2015-16 has been worked out as 56,862 crore.

The financial institution also aims to provide financial assistance of Rs 25,000 crore to Gujarat in the next two years under two different Memorandums of Understanding (MoU) signed with the state government in Vibrant Gujarat Summit 2015.