 "Nabard pegs Odisha priority sector credit at Rs 58,000 cr in FY 17")
A State Focus Paper (SFP) 2016-17, released today, presents a comprehensive picture of the credit potential estimated in various sectors of the rural economy as reflected in the Potential Linked Credit Plans (PLPs) prepared by National Bank of Agriculture and Rural Development (Nabard) for all the districts in the state.
The theme of the State Focus Paper 2016-17 is 'Accelerating the Pace of Capital Formation in Agriculture and Allied Sector'.
Out of the total credit potential of Rs 58,882.39 crore assessed for 2016-17 for the state under total priority sector, Rs 32,207.90 crore has been assessed under agriculture.
The credit potential under the agriculture constitutes a lion's share of 54.7 per cent of the total outlay.
Out of total credit estimated under agriculture, Rs 29,710.95 crore (92.2 per cent) is under farm credit, which comprises both crop loans and term loans for agriculture and allied activities.
Besides, thecredit potential under agriculture infrastructure and ancillary activities have been estimated at Rs 1,494.38 crore and Rs 1,002.57 crore respectively. Out of the total credit potential assessed under agriculture sector, about 33 per cent is under term loans.
It may be noted that erratic and deficient rains has led to severe drought in the state in 2015, affecting 1.53 million hectare of crop area in 235 blocks of 28 districts and 412 wards under 55 urban local bodies.
The credit potential for the MSME sector has been assessed at Rs 13,337.62 crore, accounting for 22.6 per cent of the total priority sector. The credit target for the commercial banks is estimated at Rs 726.54 crore to export credit, Rs 1,088.58 crore for education sector and Rs 3,932.40 crore for the housing sector.
Similarly, the credit projection of renewable energy, social infrastructure involving bank credit and others are Rs 83.09 crore, Rs 206.04 crore and Rs 7,300.21 crore respectively.
It be noted that Reserve Bank of India (RBI), during the current year, has revised the Priority Sector Lending (PSL) norms for the commercial banks. It now constitutes eight sectors - agriculture, MSME, export credit, education, housing, renewable energy, social infrastructure and others.
Nabard, while preparing the district level PLPs, has taken into account the various modifications in PSL.
"An area which has special mention in the State Focus Paper is the infrastructural requirement for comprehensive development of agriculture in the State. Nabard has state government under RIDF (Rural infrastructure development fund) for providing critical rural infrastructure in areas of irrigation, connectivity, agriculture and social sector. Sanctions during the current year under RIDF to the state have reached an all time high of nearly Rs 3000 crore, with sanction of some big ticket projects and cumulative sanctions have exceeded Rs.14,900 crore", said S K Kale, Chief General Manager, Nabard at the State Credit Seminar.
The bank has also sanctioned loan assistance of Rs 1,077 crore to the state for construction of 3,725 rural godowns in PACS for the benefit of farmer members.
The short term credit support from Nabard to cooperatives in the state, which was initially sanctioned for Rs 3,200 crore for the year 2015-16, has also been increased to Rs 3900 crore in view of the drought conditions during Kharif 2015.
Speaking on the occasion, chief secretary Aditya Prasad Padhi urged upon the banks to achieve substantial increase in credit flow to agricultural sector during 2016-17.
He urged the banks to ensure 100 per cent implementation of the subsidy and incentive based schemes announced by government in agriculture and allied sectors.
"By December end the achievement is about Rs 30000 crore, 58 per cent of the last year credit plan of Rs 47,756.44 crore for 2015-16. It should exceed 80 per cent by March. The credit flow to the segments covered in state focus paper continues to be pretty low in comparison with developed states", said P K Jena, regional director, RBI.
