Tamil Nadu - Salem   

Agriculture gets lion's share in credit plan

Special Correspondent

Industrial sector will receive Rs. 165.93 crore

SALEM: Annual Credit Plan (ACP) outlay for the priority sector lending for the Salem district for 2007-08 has been fixed at Rs. 1066.10 crore.

Released by the District Revenue Officer M. Rajarathinam and received by C. Dharmarajan, Deputy General Manager of Indian Bank, the district's Lead Bankers, here on Thursday, the ACP's projected outlay was estimated at 27 per cent, which was higher than that of last year's Rs. 838.17 crore. While Agriculture would get the lion's share of Rs 639.41 crore, which worked up to 60 per cent of the total outlay, non-farm sector, mainly industries, would receive Rs 260.76 crore. Other priority sectors were allotted a sum of Rs 260.76 crore.

The Industrial sector would be given a fillip in the ACP, which constituted nearly 16 per cent of its total outlay. This sector would receive a sum of Rs 165.93 crore to ensure a balanced development both in farm and as well in industrial sectors in the district.

The share of commercial banks had been put at Rs 814.04 crore thus contributing a whopping 76.36 per cent of the entire District Credit Plan. Others such as Salem District Central Cooperative Bank had chipped in with a contribution of 22.95 per cent.

The ACP, however, noted that there was a significant reduction in cases of crop loan from Rs 148.35 crore to Rs.126.91 crore in the Plan. The gap, the ACP hoped, would be taken care of by the commercial banks.

The crop loans in commercial banks had however increased from 61 per cent to 75 per cent, i.e, from Rs. 380.09 crore to Rs. 502.78 crore. A sum of Rs 87.75 crore had been allotted for various government-sponsored schemes.

The ACP also had plans for liberal sanctioning of credit assistance to women and tribals who came forward to form self help groups (SHG) to promote savings and thrift among them and to ensure their economic conditions. It also was planned to disburse Rs 477.63 crore in rural areas and Rs. 588.47 crore in the semi urban and urban areas.

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