Nabard plans Rs 400 cr rural development funding

The National Bank for Agriculture and Rural Development (Nabard) is gearing up to increase the sanctions under the Rural Infrastructure Development Project (RIDP) in Gujarat.

"Last year (2004-05), Gujarat saw sanctions of Rs 1,312 crore under the RIDP. The programme provides assistance to the state government in projects of irrigation, rural development and rural infrastructure. We will sanction another Rs 300 to Rs 400 crore under the RIDP shortly," Bhawar Puri, Nabard's chief general manager, Gujarat, said on Friday.

The state accounted for about 15 per cent of all funds allotted under the central government programme in 2004-05.

Commenting on the performance of Nabard in the state for the first quarter ended June 30, Puri said there appears to be a far greater co-ordination between the state government, Nabard and various banks. This has shown in the refinance done by Nabard in terms of investment credit, loans to farmer's clubs and distribution of Kisan credit cards.

Most of the amount sanctioned under the RIDP has been used by the state government in implementing the Sujallam-Suffalam project. Nabard has also provided assistance to the state government for the Saurashtra branch of the Narmada canal and for developing rural road connectivity.

Speaking on the performance in the first quarter, Puri said investment credit by Nabard stood at Rs 53 crore, one a lakh Kisan credit cards were distributed as part of the recently held krishi mohatsav and over 150 farmer's clubs were formed in the past month.

"Self help groups are emerging as one of the major focus areas with most banks looking at this avenue as a sizable contributor to rural credit portfoilio," said Puri.

The Gujarat branch of Nabard has provided an assistance of Rs 2,569 crore in the state in the financial year, up 40 per cent from Rs 1,837 crore in the previous financial year. Nabard officials said they expect assistance in the state to cross the Rs 3000 crore mark in the current financial year.