E Godavari likely to achieve credit Plan target

The District Consultative Committee (DCC) is optimistic about achieving the annual credit plan (ACP) 2006-07 outlay set for East Godavari district by the end of this year. Of the total outlay of Rs 2,400 crore, it had already achieved Rs 1,578.53 crore (65.77 per cent) by October 31, 2006.

The DCC meeting was held here recently, chaired by its chairman and district collector M Subrahmanyam.

Led by lead bank Andhra Bank, the bankers hoped that the ACP targets could be achieved by the end of December.

Under crop production loans, the achievement was Rs 764.77 crore, as against the target of Rs 650 crore (102.54 per cent). The meeting urged the bankers to sanction Rs 385.49 crore in the rabi season, which had just commenced.

By the end of October, the banks had sanctioned Rs 98.28 crore (25.50 per cent) to the farmers. Under agricultural term loans for investment credit, the achievement has been Rs 218 crore (50.42 per cent), against the target of Rs 432.91 crore.

"As on March 31, 2005, the flow of credit to agriculture (in terms of outstandings) crop production loans was Rs 1,024.55 crore. As on September 30, 2006, the flow of credit (in terms of outstandings) increased to Rs 1,820.85 crore. Progress for doubling of credit to agriculture by March 31, 2007, is therefore encouraging,'' said Subrahmanyam.

In the case of non-farm sector and other SSI, the achievement was Rs 235.93 crore as against the target of Rs 377.17 crore (62.55 per cent). In the other priority sector, the performance was Rs 359.57 crore as against the target of Rs 554.43 crore (64.85 per cent).

Subrahmanyam said the agriculture department should identify non-loanee farmers and controlling officers of banks should ensure that 2.5 per cent of the new farmers were added to bank finance in 2006-07.

He said the agriculture department should take the responsibility for formation of rythu mitra groups (RMG) and help banks in the recovery of RMG loans.