Nabard projects Rs 2,205 crore credit outlay for Meghalaya

Outlay represents 19% rise over previous year's figure

The National Bank for Agriculture and Rural Development (Nabard) has projected a credit flow of up to Rs 2,205.66 crore for priority sectors in Meghalaya for 2015-2016, a rise of 19 per cent over last year's outlay.

The state focus paper has projected a credit flow in agriculture and allied activities at Rs 75,568.26 lakh, non-farm sector at Rs 52,819.08 lakh while other priority sectors, including self-help groups, were projected at Rs 92,178.91 lakh, Nabard Deputy General Manager K L Prabhakar told PTI.

He said the overall development perspective of the state must envision enhancing income generating opportunities to 70 per cent of population engaged in agriculture on a sustainable basis as this sector contributes about 22 per cent of the Gross State Domestic Product (GSDP).

Stating that the GSDP for 2013-14 at constant prices (2004-05) was Rs 13,465 crore as against Rs 11,978 crore in 2012-13, Prabakar said a 12.41 per cent growth was registered.

He said this is higher than the GSDP growth rate of 2.18 per cent during 2012-13 and the share of primary, secondary and tertiary sectors in the GSDP in 2013-14 (at current prices) was 16.42 per cent, 29.47 per cent and 54.09 per cent, respectively.

Keeping in mind the average targeted growth of 8.76 per cent in the 12th Five Year Plan period (2012-17), he said the primary, secondary and tertiary sectors are expected to grow at 3.12 per cent, 10.22 per cent and 10.0 per cent, respectively.

Ruing that per capita income in Meghalaya is lower than the all-state average by about 10 per cent and there is a need to provide economic opportunities for the growing youth population, the Nabard official said the target for primary, secondary and tertiary sectors have been increased to 5.5 per cent, 12.4 per cent and 12.5 per cent, respectively.

Assuming an incremental capital-output ratio (ICOR) of 4 per cent at 2011-12 prices, the volume of investment required for achieving 11 per cent growth during the 12th Plan period works out at Rs 42,887 crore.

An amount of Rs 707.58 crore was disbursed during 2013-14 for various sectors as against the target of Rs 1,262.86 crore under the Annual Credit Plan for the state.

The overall credit disbursement ratio in the state was 43.04 per cent as on March 31 last year, registering a marginal increase of 5.78 per cent from that of 2012-13 (37.26 per cent) as against a national average of 79.1 per cent and the minimum stipulated requirement of 60 per cent.

The Nabard official also said that East Khasi Hills district alone absorbed more than 70 per cent of total credit, leaving 10 districts to share the remaining 30 per cent credit, causing regional imbalances in agriculture credit disbursement in the state.

South West Khasi Hills district has the lowest share at only 0.74 per cent followed by South Garo Hills and South West Garo Hills districts at 0.99 per cent and 1.07 per cent, respectively.