UP rural credit potential estimated at Rs 1,43,000 crore for FY16

National Bank for Agriculture and Rural Development (NABARD) has estimated Potential Rural Credit Plan outlay of Rs 1,43,406 crore for Uttar Pradesh during 2015-16.

The projected outlay is 18 per cent higher compared to the corresponding current fiscal's figure for the state.

The Plan proposes outlay of Rs 1,04,056 crore for agriculture, Rs 18,512 crore for Micro, Small and Medium Enterprise (MSME) sector and Rs 20,837 crore for sectors like education, rural housing, transport etc in rural UP.

The Plan was unveiled in 'State Focus Paper 2015-16 of UP' released by state chief secretary Alok Ranjan at the State Credit Seminar hosted by NABARD here today.

Commenting on the theme 'Accelerating the Pace of Capital Formation in Agriculture and Allied Sectors' for State Focus Paper, Ranjan underlined the need for sizeable increase in investment for accelerating pace of capital formation in agriculture across both public and private sectors.

He highlighted the initiatives of UP needing support of bank finance that were reflected in State Agriculture Policy, State Horticulture & Food Processing Policy, State Potato Policy and State Policy on Bio-Energy and Renewable Energy.

Ranjan stressed on encouraging the younger generation for taking up agriculture ventures by simplifying norms for bank finances.

Meanwhile, NABARD chief general manager K K Gupta emphasised the importance of capital formation for the state's economy, especially agriculture & allied sector. He outlined the action points for all stakeholders, particularly the banks, increasing investment credit in agriculture and allied sector.

He suggested for greater support of the state government in facilitating larger credit flow to rural sector and urged for appropriate integration of Banks' Credit plan with the government's development plan by way of appropriate sectoral allocation in State Budget.

Further, he said the credit estimates could serve as the basis for preparing annual credit plan for the state.