TN's credit needs projected at Rs 32185cr

The National Bank for Agriculture and Rural Development (Nabard) has identified Rs 32,185.34 crore as credit potential under the priority sector for Tamil Nadu for the year 2007-08.

A Nabard focus paper on the state estimates the exploitable potential in 29 districts in Tamil Nadu, taking into account both the short and long-term credit requirements.

The estimated credit potential is classified under major sectors, which include Rs 11,457.56 crore for crop loans, Rs 8,573.45 crore for non-farm sector, Rs 3,973 crore for allied activities, Rs 628 crore for agro and food processing and Rs 7,553.21 crore for other activities under the priority

sector. The potential-linked credit plans (PLPs) had allotted Rs 26,058 crore as the estimated potential for the state for the year 2006-07.

Speaking at a state-level seminar organised by Nabard, L K Tripathy, chief secretary, government of Tamil Nadu, said: "Stepping into the first year of the Eleventh Five Year Plan, the main theme should be inclusive growth. The rate of growth of the Indian economy has been impressive, except for the agricultural sector, and therefore, we should take this sector also on board. The agriculture sector's share in India's gross domestic product (GDP) during 2005-06 was 19.9 per cent. Ironically, agriculture is the mainstay for around 56-60 per cent of the Indian population. Our future outlook should focus on reducing the rural-urban divide and bridging the gap between the rich and the poor. Bankers should address these issues and increase their advances towards agriculture."

He laid emphasis on generating additional income for small, landless and marginal farmers, fishermen and weavers.

"Growth has been good at the macro-level, but the same cannot be said for the micro-level. Additional income generation opportunities would enable them to return the loans taken from financial institutions," he added.

"Around 20 lakh hectares of wasteland in Tamil Nadu are utilised during the 'monsoon favourable' years and 26 lakh hectares during drought years. The constraints of cultivation in wastelands can be removed if all the agencies come together and employ a cluster approach to develop these lands," Tripathy said.