Nabard projects 18 per cent growth in credit for K'taka

Annual potential-linked credit plan to be ready by April 2008.

National Bank for Agriculture and Rural Development (Nabard) has estimated the credit potential for Karnataka during the financial year 2008-09 to be Rs 24,620 crore, a growth of 17.75 per cent over the present fiscal.

The potential for crop loans has been assessed at Rs 11,320.80 crore, potential for investment credit in agriculture and allied activities is Rs 3,895.31 crore, Rs 2,190.79 crore has been identified for non-farm sector, Rs 454.14 crore for agro-processing and Rs 6,759.32 crore for other priority sector activities.

Nabard has been preparing potential-linked credit plans (PLPs) for all districts on an annualised basis from 1989-90. The PLPs take into account the resource endowments of each district, whether they be natural endowments, that is land, water, climatic conditions, human resources, institutional presence, availability of infrastructure, level of technology availability and adoption, and such other factors.

According to D B Gore, Chief General Manager, Nabard, Karnataka, the PLPs for all districts in the state have been prepared for 2008-09 and launched. These PLPs form the basis for credit planning at the district level. The credit planning process for 2008-09 has already commenced at the district level and will be completed by the end of March 2008, he said.

Announcing the details of the credit potential plan next fiscal at the state level credit seminar: 'State Focus Paper 2008-'09', here today, he said Nabard is assisting the state government in preparing the district agriculture plans which will be ready very soon.

Nabard has estimated a credit potential of Rs 571 crore for minor irrigation with an emphasis on drip and sprinkler irrigation, Rs 457 crore for land development. Keeping in view the diverse agro-ecological conditions available in the state which is conducive for large varieties of horticultural crops, Rs 676 crore has been estimated for credit flow under plantation and horticulture. The major crops identified are coffee (Rs 134 crore), arecanut (Rs 62 crore), coconut (Rs 59 crore), floriculture (Rs 58 crore) and infrastructure creation (Rs 67 crore). Under sericulture the estimated credit potential is Rs 90 crore.

For farm mechanisation, Nabard has estimated a credit potential of Rs 991 crore and Rs 208 crore for post-harvest management. An amount of Rs 519 crore has been estimated as the potential for animal husbandry.

Under rural non-farm sector, an amount of Rs 2,191 crore has been estimated as the potential available during 2008-09 and Rs 6,759 crore under other priority sectors.

Under Rural Infrastructure Development Fund (RIDF), in Karnataka, as many as 27,223 projects entailing Nabard assistance to the tune of Rs 3,837 crore have been sanctioned and Rs 2,315 crore has been disbursed.

The roads and bridges constitute 57 per cent and irrigation constitutes 20 per cent. An amount of Rs 144 crore under minor irrigation and Rs 152 crore under watershed have been sanctioned under the prime minister's relief package.

Considering the importance attached by government of India on food and agro-processing in the recent times, Nabard has estimated Rs 454 crore for agro-processing during the year 2008-09.

At the seminar, attended by representatives of various public sector banks and government departments, Nabard suggested the state government to improve productivity of crops for attaining potential yield by ensuring realistic scale of finance and a wide coverage of Kisan Credit Cards and single window extension system.