PATNA: Union Finance Minister P. Chidambaram on Wednesday came out with a blueprint for increasing the credit flow from commercial banks but ruled out any special package for Bihar.

Mr. Chidambaram, who chaired a meeting of the State Level Bankers' Committee and later held a meeting with Chief Minister Nitish Kumar and Deputy Chief Minister Sushil Kumar Modi here, pulled up commercial banks for their lax functioning. He instructed them to raise agricultural credit to Rs. 10,000 crore during the current financial year, revise the target for disbursement of the Kisan Credit Card (KCC), identify cluster development of thrust areas, properly implement the Million Shallow Tube-well Programme (MSTP) and set up self-help groups.

No excuses would be accepted if demands for agricultural loans were not fully met. He demanded by July 1 a report on the increase in disbursement of KCCs across the State. The present target of 1.43 lakh was pitiable and had to be revised within a week, he said.

On the poor progress in disbursement of loans under the MSTP, Mr. Chidambaram vested with Chief Secretary G.S. Kang the power of getting the loan forms filled and submitted to the banks. The target for the current financial year has been set at 2.61 lakh.

Five sectors were identified for cluster development: weaving, dairy development, handicrafts, readymade garments and food processing.

Mr. Chidambaram hoped that the State Government would identify the regions where these could be developed. It would be the banks' responsibility to finance the sectors.

The Minister was appalled at learning that there were 34 branches in Patna district alone, which had not disbursed a single paise as loan during 2005-06, and about 800 others were functioning irregularly for lack of staff. He directed that all regional and zonal managers visit at least 20 branches, including two in rural areas, in the State every month.

Mr. Chidambaram ordered that the Chairmen and Managing Directors of all nationalised banks visit Bihar every month over the next three months to take stock of their functioning. There was no point in keeping a branch open if it failed in its primary "dharma" of lending money, he said.

He ruled out sanctioning of a special package for the State, which Mr. Kumar demanded in a memorandum.

Concern over inflation

Mr. Chidambaram expressed concern over the rise in the prices of some essential commodities but said inflation would be kept under control.

He said the Centre was concerned at the manner in which the prices of wheat, pulses and sugar had shot up.

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