HYDERABAD: Chief Minister Y.S. Rajasekhara Reddy on Monday directed officials to take up the issue of reduced credit support by NABARD to the Andhra Pradesh State Cooperative Bank (APCOB) Limited.

The State-level apex bank is in a piquant situation with the NABARD reducing refinance limit to it to Rs.1,482.42 crores under short-term crop loan category this year.

The APCOB, in fact, has chalked out a programme to provide Rs.3,340-crore credit to farmers under this category through District Cooperative Credit Banks and Primary Agricultural Cooperative Societies (PACS).

APCOB Chairman Vasantha Nageswara Rao met the Chief Minister to seek his intervention for securing upward revision of the credit limit as the operative limit of the NABARD credit was only Rs.1,187.53 crores (up to September-end) when compared to last year's Rs.1,337.57 crores.

In a memorandum to the Chief Minister, he urged him to impress upon the NABARD the need to permit 100 per cent credit drawing facility as there was a restriction on this aspect too. He pointed out that the APCOB was not in a position to lend long-term loans this year as the NABARD had not come out with a clear policy in this regard.

Crop insurance facility

He urged Dr. Reddy to allow recruitment of staff as the present ratio was insufficient to meet the demand. Crop insurance facility was also not declared for all districts except Kadapa and Anantapur, he said.

Funds for State

Y. S. P. Thorat, NABARD Chairman, on Monday agreed to provide Rs.990 crores to the State under the Rural Infrastructure Development Fund, which includes support for Indiramma.

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