Nabard pegs Gujarat's credit projection at Rs 47K cr for fiscal 2012-13

Amid dull investment sentiments from industry for 2012, National Bank for Agriculture and Rural Development (Nabard) has predicted 28 per cent rise in the total credit under priority sector in Gujarat during 2012-13. In a "State focus paper for 2012-13" released by Nabard's Gujarat Regional Office, the total credit potential for the year 2012-13 is estimated at Rs 47,432 crore up from Rs 36,988.43 crore in the previous year.

While, Dileep Sanghani, agriculture minister, government of Gujarat maintained that there was greater need for a uniformity in the offering of credit to the farmers in the state. "Different cooperative banks charge different rate of interest rates on farm loan for the same purpose. This makes difficult for farmers to approach banks for loans," he said at a function organised by Nabard in Ahmedabad on Wednesday.

The minister also laid emphasise on innovation in the system for farm credits. "In order to strengthen the cooperative sector, which meets the more than 40 per cent of the total farm loan requirements. Amendments to the cooperative act are also suggested," added the minister, who also holds the cooperatives portfolio. Nabard's potential linked credit plan for 2012-13 covered 19 different sectors in the state ranging from crop loan, loans for water resources, land development, horticulture, animal husbandry, fisheries, renewable energy sources, storage infrastructure as well as loans to rural and non-farm sectors.

The loan potential for agriculture sector for 2012-13 is estimated at Rs 31,763 crore up from Rs 24,901 crore in 2011-12. Credit potential in non-farm sector and other potential sector seen at Rs 15669 crore up for 2012-13, up from Rs 12087 crore in 2011-12.

The crop loa9n potential in the state is estimated at Rs 22,469 crore for the year 2012-13, while that for water resources is estimated to be about Rs 1286.61 crore. "The Focus Paper is not a mere a plan on paper but it is an implementable credit plan prepared by Nabard as per RBI guidelines. The credit plan of Rs 47,432 crore is achievable and everyone has to work together to achieve the goal set for the state," said V Ramakrishna Rao, executive director, Nabard.Some of the major challenges lie ahead included covering 1.8 million farmers under Kisan Credit Card (KCC), convergence of public investments in agriculture sector, and inter institutional issues relating to processing charges, service charges were considered to be pertinent challenges.

A K Joti, chief secretary, government of Gujarat emphasised on covering more farmers under KCC. "A few defaults in KCC should not be a reason to deny a KCC to other farmers. It is time cooperative banks work up plans to cover large number of farmers under KCC," he said adding that the key three stake holders of the plan, including financial institutions, government machinery and the beneficiaries need to participate all together.