Bhubaneswar: Expecting more proactive role of banks in making the credit plan a success Odisha Chief Minister Naveen Patnaik said, “I expect the National Bank for Agriculture and Rural Development (NABARD) to sharpen its initiative,” inaugurating the NABARD’s State Credit Seminar 2018 here on Wednesday.
Naveen said, “I am glad that NABARD has prepared the State Potential Linked Credit Plan that has projected the total credit demand under the priority sectors for the year 2018-19 at Rs 71, 419 crore in the State Focus Paper. Under the agriculture sector, the State-level plan has estimated credit flow of Rs 38, 0378 crore during next financial year.”
“I would expect NABARD to further widen and sharpen its interventions in Odisha resulting in intensification of the partnership with the Government for agricultural assets, rural infrastructure and various other critical gap funding programmes,”the Chief Minister added.
Finance Minister Sashi Bhushan Behera said, “Last year the potential credit plan was not achieved. The factor and issues behind it should be identified.”
Chief Secretary AP Padhi said there is negative growth in a priority sector like agriculture. All the stakeholders involved should work together to remove it. The poor banking network in the State is a matter of concern. The credit flow is not improving. The brick and mortar branches number should be increased. Much is not being done about it. Without adequate internet facilities financial inclusion is not possible particularly in the remote and rural areas.
However, Odisha financial indicators are sound and the State is the biggest beneficiary of NABARD’s RIDF scheme, Padhi added.
It might be mentioned that the aggregation of the district-wise Potential Linked Credit Plans (PLPs) of NABARD for 2018-19 projects a credit flow of Rs 71,419.85 crore for the State, indicating an increase of 7.31 per cent over credit projection of Rs. 66,554.51 crore made for 2017-18. Out of the total credit potential for priority sector, an amount of Rs 38378.41 crore has been assessed under agriculture.
Credit potential under agriculture constitutes 53.74 per cent of the total priority sector, of which Rs 35528.23 crore (92.57%) is estimated under farm credit, which comprises both crop loans and term loans for agriculture and allied activities.
Besides, credit potential under agriculture infrastructure and ancillary activities have been estimated at Rs 1,671.58 crore and Rs 1,178.60 crore, respectively. Moreover, out of the total credit potential assessed under agriculture sector, 27.48 per cent is under term loans.
Credit potential under the MSME sector has been assessed at Rs 17,919.19 crore, constituting 25.08 per cent of the total priority sector. Other sectors consisting of export credit, education, housing, renewable energy, others and social infrastructure have 20.73 per cent share in the total credit potential under priority sector.
Similarly, under RIDF total financial outlay against these investments has been assed at Rs 5,363.18 crore including Rs 2,124.23 crore for irrigation, Rs 1,848.63 crore for rural connectivity, Rs 287.15 crore Rs 243.15 crore for agricultural infrastructure, Rs 68.68 crore for animal husbandry, Rs 56.94 for fisheries and Rs 734.40 crore for social sector infrastructure.
Nabard CJM KC Panigrahi delivered the welcome address. Among others, Finance Secretary Tuhin Kant Pandey and many other senior officers were present.