"The Union government is not paying its share of 25 per cent subsidy on loans taken by dairy industry from banks for past one-and-a-half year", Bihar Deputy Chief Minister Sushil Kumar Modi told reporters.
Modi, who is also state's Finance minister, said that the state and the Centre has to pay 25 per cent each as subsidy on loans taken for dairy industry from banks.
"While the Bihar government is providing its share of 25 per cent but the Centre is not doing so for the past one-and-a-half years," he said after a reviewing bank performance in the state in the past six months.
The Bihar Finance Minister also lamented low loan disbursal by banks in the state which he said was "crippling" the pace of economic development in the state.
"The banks have to disburse Rs 51,400 crore as loan in the financial year 2012-13 but they have distributed only Rs 19,066 crore by now," Modi said.
He said considering low credit-deposit ratio, the state government had listed 14 banks and decided not to deposit its money in these banks.
Animal Husbandry minister Giriraj Singh and senior Bank officers were present on the occasion.
