Rajasthan got Rs 1,877 cr from Nabard in 2005-06

The financial aid extended by National Bank for Agricultural & Rural Development (Nabard) to Rajasthan touched Rs 1877.75 crore during 2005-06, up from Rs 1,682 crore in 2004-05.

"The support comprises long-term and medium-term refinance of Rs 407.88 crore as investment loans, and a short-term refinance of Rs 861.74 crore," Chief General Manager J R Sarangal said.

The major purposes for which medium-term refinance was extended included Rs 183.51 crore for farm mechanisation, Rs 84.81 crore for the rural non-farm sector, Rs 35.30 crore for minor irrigation, Rs 35 crore for land development, Rs 28.29 crore for dairy development and Rs 23.58 crore for financing self-help groups (SHGs).

The state government has so far drawn an amount of Rs 1779.66 crore for various sectors like irrigation, rural roads, bridges, rural drinking water supply, information techonology, school buildings, and flood control structures in rural areas.

Under the government of India's announcement of doubling of farm credit, a sum of Rs 6,180.74 crore was disbursed by banks in Rajasthan up to February 28, 2006 against a target of Rs 7,735.03 crore.

In view of the Reserve Bank of India's (RBI) instructions making the potential linked credit plans being prepared by Nabard as the basis for credit planning for 2006-07, Nabard has assessed credit potentials in the state at Rs 14,880 crore with Rs 9,963 crore for agriculture and allied sectors, Rs 1551 crore for the non-farm sector, Rs 213 crore for SHGs and Rs 3,153 crore for other priority sectors.

Sarangal said some of the thrust areas identified for financing include micro irrigation, land development, horticulture and medicinal plants, animal husbandry and storage and market yards. This exercise, he said, would enable banks to deploy their resources in sectors according to the potential available.

In order to facilitate scientific development of agriculture and building a link between the banks and rural communities, Nabard has been supporting the credit extension initiatives of banks through the concept of farmers' clubs. During the year, Nabard supported 255 new farmers' clubs, taking the total of such clubs operating in the state to 778.

The financial assistance extended for these initiatives was Rs 38 lakh, up from Rs 26 lakh in the previous year. The micro finance movement being propagated by Nabard scaled a new height with banks financing additional 41460 SHGs taking the total number of SHGs credit linked in the state to over one lakh.. The bank loan amount disbursed so far is Rs 242 crore, he pointed out.