The Hindu : Andhra Pradesh News : Credit plan unveiled

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Thursday, Mar 20, 2008
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Andhra Pradesh

Andhra Pradesh

Credit plan unveiled

Staff Reporter

Rs. 1,943 for farm sector

Kakinada: District Collector and Chairman of the District Consultative Committee (DCC) M. Subrahmanyam released the Annual Credit Plan for 2008-09 on Wednesday providing a total outlay of Rs. 3,000 crores, including Rs. 1,943 crores for the farm sector. The highest allocation of Rs. 1,170 crores was made for crop loans. A sum of Rs. 126 crores was earmarked for agricultural term loans and Rs. 645 crores for agricultural and allied activities.

Major components

The other major components of the ACP were Rs. 515 crores for non-farm sector and small-scale industries and Rs. 540 crores for other priority sector (OPS). The outlay was 15.82 per cent (Rs. 409 crores) more than Rs. 2,590 crores allocated for 2007-08. The share of ACP 2008-09 was 94.10 per cent to the Potential Linked Credit Plan prepared by the National Bank for Agricultural and Rural Development (NABARD).

Andhra Bank and State Bank of India contribute to nearly 60 per cent of the total outlay. The balance comes from other PSU banks, regional rural banks and new generation private banks like ICICI Bank and Axis Bank.

While releasing the ACP, Mr. Subrahmanyam sought greater emphasis to be laid on Total Financial Inclusion (TFI), which envisaged bringing every family in the district under the purview of the banking sector by opening no-frills accounts as per the guidelines of the Reserve Bank of India (RBI). He also ordered that the welfare schemes aimed at self-help groups should be given due priority by the banks according to the recommendations of the State Level Bankers’ Committee.

ITDA Project Officer Yogitha Rana said that the ACP was like a cake, but the banks’ failure to meet the targets pertaining to tribal welfare schemes was unpalatable, like a stone in the cake. She regretted that the banks appeared to be reluctant to provide loans to tribal people. As a consequence, a majority of the primitive tribal groups and poorest of the poor in the Agency areas of East Godavari district were deprived of the benefits due to them.

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