The Hindu : Karnataka / Bangalore News : NABARD plans five new projects

Online edition of India's National Newspaper
Sunday, Apr 09, 2006

Karnataka

Karnataka - Bangalore

NABARD plans five new projects

Special Correspondent

Bank to lend over Rs. 2,400 crore to the farm sector

BANGALORE: The National Bank for Agriculture and Rural Development (NABARD) has decided to implement five new area development projects in nine districts this fiscal year.

NABARD's Chief General Manager for the Karnataka Region B.B. Mohanty said the area development projects in arecanut (Dakshina Kannada, Shimoga and Davangere), gerbera cultivation (Belgaum), brackish water shrimp farming (Dakshina Kannada and Uttara Kannada), bamboo (Kodagu) and jatropha (Kolar and Bangalore Rural) would be implemented. NABARD has identified three clusters in Bagalkot (kambli weaving), Chitradurga (arecanut processing) and sericulture (Chamarajanagar) for development in 2006-07. Each cluster will be developed at a cost of Rs. 1 crore.

Mr. Mohanty said NABARD would lend Rs. 17,803 crore to the rural sector in the State this financial year. Of this sum, Rs. 8,401 crore had been set aside for crop loans, Rs. 2,483 crore for investment credit in agriculture and allied activities and Rs. 6,919 crore for non-farm sector and other priority sectors. Vaidyanathan panel

Mr. Mohanty told presspersons that the State Government had not given its nod so far for the implementation of the revival package for cooperative credit institutions finalised by the Union Government, based on the Vaidyanathan Committee recommendations.

He said NABRD would pursue the issue with the State Government. NABARD is the coordinating agency for the implementation of the package with the Centre providing 70 per cent of the required funds with the State sharing the rest.

He urged the State to accept and implement the recommendations of the committee on cooperative bank reforms. Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Orissa and Bihar had started implementing the recommendations, paving the way for making cooperative banks financially and organisationally strong so that they could effectively deliver rural credit.

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