Rs 11,780 crore investment scope in MP: Nabard

State Focus Paper 2006-07, released recently by the National Bank for Agriculture and Rural Development (Nabard), has estimated an investment potential of Rs 11,780 crore for agriculture and allied activities in Madhya Pradesh.

The estimated fund includes infrastructure. Nabard has urged both banks and state government departments to create an environment for development in the state.

Narendra Singh Tomar, minister for panchayat, rural development & PR, released the State Focus Paper 2006-07 in a state credit seminar at Academy of Administration, appreciating Nabard's initiatives and said that without the bank's support the government wouldn't have been able to achieve its targets.

He added, "We expect more support from Nabard, as without development in agriculture, the state's economic growth is not possible. Banks should encourage farmers to integrate their financial and agricultural activities."

Citing the Potential Linked Plan (PLP) in the paper, Ashok Mathur, chief general manager of Nabard, said the district- wise PLP was now being considered as a base document for credit planning by banks and the government.

Mathur said the paper would provide an opportunity to understand issues and problem related to basic facilities, which in turn would help bankers enhance their business and transform services to new borrowers.

"Through decentralisation, we have considered PLPs in 48 districts of MP. PLP would be provided to banks and government departments," he pointed out. He said that the state registered 68 per cent growth in agriculture lending in 2004-05 by disbursing agriculture loan of Rs 5,632 crore against Rs 3,334 crore in 2003-04.

Nabard, under its Rural Infrastructure Development Fund (RIDF), sanctioned a loan of Rs 3,255.12 crore for 2,239 projects in the state till November 30, 2006.

However, the focus paper failed to mention non-performing assets (NPAs) of commercial banks in the state from 2002-2005, stating data was "not available". There are 37 commercial banks in the state, with 2,386 branches.

Although the paper has mentioned the NPA status of district central co-operative banks and state co-operative agriculture rural development banks, with single figure branches.

"NPAs are the backbone of any bank. Not disclosing their status for commercial banks that do more than 50 per cent of lending, is incomprehensible," an economist remarked.

Tomar also stressed on developing housing infrastructure for doctors in villages, as that would encourage doctors to go to rural areas.