The Hindu : Tamil Nadu News : Rs.328-cr. potential-linked credit plan for Tiruvarur district

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Sunday, Nov 21, 2004

Tamil Nadu

Tamil Nadu - Others

Rs.328-cr. potential-linked credit plan for Tiruvarur district

By Our Staff Reporter

TIRUVARUR, NOV.20. The potential-linked credit plan for Tiruvarur district has projected a credit flow of Rs.328 crore for 2005-06.

The District Revenue Officer, P.Moorthi, released the plan, prepared by the National Bank for Agriculture and Rural Development, at the district consultative committee meeting of bankers today.

G. Jayachandran, Senior Regional Manager, Indian Overseas Bank, lead bank of the district, received the plan.

Mr. Moorthi urged the bankers to achieve the projections and asked the departments to bridge the infrastructure gap to facilitate credit absorption.

According to K. Palanisamy, Assistant General Manager, NABARD, the plan lays stress on increasing crop loans and coverage of all crop loans under Kisan Credit Card.

The plan envisages a credit flow of Rs.298.55 crores towards short-term loans for crop production.

Potential for term loans for agriculture and allied activities has been estimated at Rs.48.80 crores.

Under non-farm sector, Rs. 48 crores has been projected while credit potential for other priority sectors (service sector) stands at Rs.86 crores.

Development of rural non-farm sector on a cluster basis through activity-specific entrepreneurship development programmes has been stressed with active involvement of self-help groups.

Under term-loan for agriculture, the thrust is on development of minor irrigation, farm mechanisation, horticulture, dairy development, development of poultry by adopting contract farming and encouraging small backyard type units, goat rearing, freshwater prawn culture, shrimp culture in coastal areas with licence from Aquaculture Authority of India.

Consultancy services

The NABARD has launched consultancy services `NABCONS' offering technical and financial expertise in agriculture and rural development projects.

The plan recommends increased use of bio-pesticides and bio-fertilisers, vermi composting and coir pith composting units, financing to set up agri-clinics and agri-businss centres by agriculture, veterinary and fishery graduates. Groundwater development

Groundwater development is not encouraged as Thiruthuraipoondi and Muthupet blocks are classified as saline while Kodavasal block is categorised as `critical.' Valangaiman is classified as `over-exploited.'

The plan suggests micro level studies to be taken up in `critical' and coastal blocks to identify the pockets where groundwater can be tapped, restoration of canal command, construction of artificial recharge structures and construction of farm ponds.

The plan calls for revival of defunct milk unions and improving the performance of active unions.

It has reviewed the available infrastructure facilities and identified infrastructure and other support services required to be made to achieve the full credit potential.

K.Palanisamy, AGM, NABARD, indicated that under rural infrastructure development fund, the NABARD had sanctioned Rs.89.02 crore for construction of 83 bridges, 84 rural road works covering a distance of 307.80 km, six projects for system improvement in power sector and 10 projects for improvement of school infrastructure.

He felt that these investments in infrastructure and rural connectivity would increase the demand for credit and banks had to meet the demand.

The plan will provide the background to prepare the annual credit plan for 2005-06.

The NABARD has sought close coordination between banks and departments to sort out various bottlenecks and ensure smooth flow of credit.

Hemavathi Santhanam, lead District Officer, Reserve Bank of India, T. Ramadoss, Lead District Manager, IOB, M. P. Sivan Arul, Special Officer, Thanjavur and Kumbakonam Central Cooperative Banks, bankers and officials attended the meeting.

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