Shimla: In order to give an impetus to credit flow for various sectors, a state focus paper has asked banks in Himachal to increase credit flow by 20 percent over the 2009-10 target to the priority sector so as to achieve the estimated potential of Rs 5154.33 crore for 2010-11.
At a state credit seminar on Saturday, National Bank of Agriculture and Rural Development (NABARD) presented a state focus paper based on the potential linked plans for each district of the state.
The assessment of potential was Rs 1965.19 crore for the agricultural sector and Rs 3189.14 crore for the services, manufacturing, housing and educational Sectors.
The banks would now be guided by the projections made in the State Focus Paper by NABARD while developing their Annual Action Plans for disbursement of credit to the priority sector for the financial year 2010-11, said an NABARD spokesman.
The paper identified the highest potential was there for crop loans within the agriculture sector at Rs 1017.92 crore that represented an increase of 29.46 % over the 2009-10 Annual Credit Plan.
Given the importance accorded to capital formation by the private sector, Rs 947.27 crore has been envisaged as term loan for various Investment Credit activities in Agriculture, which is a 44 % increase over the 2010-11 plan.
Within Investment Credit to Agriculture, the highest potential has been identified for Animal Husbandry at Rs 159.56 crore due to the launch of the Doodh Ganga project and for plantation – horticulture at Rs 107.30 crore, for water resources at Rs 46.25 Cr and for land development Rs 69.75 crore, were other sectors for which major potential stood identified, he added.
SK Mitra, executive director NABARD advised banks to enhance the Credit – Deposit ratios to achieve the potential assessed.
Asha Swarup, chief secretary, asked banks to enhance credit flow as the percentage contribution of Agriculture and Allied sectors in the Total State Domestic Product in HP had declined from 26.50 % in 1990-91 to 18.20 % in 2007-08. She asked banks and NABARD to boost investments in the food and agro processing industries.
As Editor, Ravinder Makhaik leads a team of media professionals at Hill Post.
Spanning a career of over two decades in mass communication, as a Documentary Filmmaker, TV journalist, Print Media journalist and with Online & Social Media, he brings with him a vast experience. He lives in Shimla.