The Hindu : Karnataka News : NABARD aid amounts to Rs. 2,196 cr.

Online edition of India's National Newspaper
Friday, Apr 08, 2005

Karnataka

Karnataka

NABARD aid amounts to Rs. 2,196 cr.

By Our Staff Reporter

BANGALORE, APRIL 7. The National Bank for Agriculture and Rural Development (NABARD) has extended an overall assistance of Rs. 2,196 crores during 2004-05, which includes refinance to banks to the tune of Rs. 1,763 crores, Rs. 421 crores for rural infrastructure and Rs. 12 crores for grants and revolving fund assistance.

The Chief General Manager, NABARD Regional office, B.B. Mohanty, told presspersons here today that the major initiative from the bank during the year has been the "Scheme for resetting of interest and re-scheduling the principal due from long term cooperative institutions, and prepayment of principal by commercial banks, regional rural banks, and short-term ST institutions."

This has enabled the regional rural banks and cooperatives to retire their high-cost debts prematurely and save as much as Rs. 23 crores in interest outgo. The benefit of that saving was passed on to the borrowers.

Mr. Mohanty said NABARD's Rural Infrastructure Development Fund (RIDF) provided Rs. 421 crores during the current year. The total assistance sanctioned since 1995-96 is Rs. 2,375 crores, covering 13,299 projects. As many as 3,185 projects costing Rs. 1,327 crores have been completed. Thanks to the programme, the irrigation potential is anticipated to be augmented by about 1.78 lakh hectares, rural connectivity is expected to improve exponentially with the completion of more than 24,950 km. of rural roads and 537 bridges, connecting over 23,000 villages. Over 2.6 crore rural population will benefit from the infrastructure augmentation, while over 300 lakh man-days will be generated.

In social terms, RIDF will mean better access to primary education, child care and health facilities, through connectivity for 3,77 primary schools, 1,411 secondary schools, 1, 667 anganwadis and 94 primary health centres. Over Rs. 32.65 crores went towards strengthening marketing and storage facilities in the rural areas and 222 market yards that are accessed by 1,636 villages and 15 rural godowns with a total capacity of 39,600 tonnes.

Kisan credit card

During 2004-05, an additional 2.71 lakh farmers were covered under the Kisan Credit Card Scheme, taking the total number to 26.46 lakhs. NABARD's assistance for it is Rs. 11,137 crores.

Under the capital investment subsidy scheme of the Centre for minimising post-harvest losses, NABARD has so far assisted in setting up 22 cold storages. In the current year, five were set up. The total installed capacity is more than 1,00,000 tonnes.

NABARD is implementing three agri-export zones in the State, for the promotion of contract farming. The zones for rose onion, flowers and gherkhins are being implemented, while the Centre has approved one for vanilla.

NABARD has four projects under co-financing — one each with ING Vysya and Bank of Baroda, and two with Andhra Bank, with an outlay of Rs. 41.81 crores. NABARD's share is Rs. 10.92 crores. It has released Rs. 71.82 lakhs for an integrated farming project with Vysya Bank.

Mr. Mohanty said NABARD hopes to play a major role in Centrally-sponsored schemes such as venture capital scheme for livestock, marketing infrastructure through the private sector, tank-based water harvesting scheme for SC/STs, bio-fertilizers, micro-irrigation, national project for organic farming and the National Horticulture Mission.

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