Chief Minister launches Rs. 65,763 cr. credit plan

DEVELOPMENT PLANS:Chief Minister K. Rosaiah, launching the State Credit Plan 2010-11 at the
HYDERABAD: Launching Andhra Pradesh's Credit Plan for 2010-11, projected at Rs. 65,763 crore for the priority sector at the State Level Bankers' Committee (SLBC) meeting here on Wednesday, Chief Minister K. Rosaiah urged banks to reschedule farmers' loans and increase lending to SHGs, housing and medium and small scale units.
Banks had surpassed credit plan target of Rs. 55,500 crore for the priority sector in 2009-10 and achieved Rs. 56,921 crore (102 per cent). Under agriculture, an amount of Rs. 37,573 crore was achieved against the target of Rs. 32,500 crore (115.61 per cent).
The overall credit plan for 2010-11 had been proposed at Rs.82,351 crore, including the target of Rs.16,588 crore for non-priority sector. The target for agriculture was projected at Rs.41,913 crore this year.
Complimenting the banks for their good work, Mr. Rosaiah referred to the severe drought and floods experienced by the State in quick succession during the last crop year and said that conversion was done for only 30 per cent of crop loans. He wanted the situation to be corrected as it would hamper disbursal under ensuing kharif season.
He said financing tenant farmers through Joint Liability Groups (JLGs) had not taken off and suggested that a sub-committee with representatives of SLBC, NABARD, Agriculture Department be formed to come out with a “workable solution” before kharif lending begins.
Pointing out that a huge gap was seen for the first time in meeting the target in respect of SHG financing last year, he urged the banks to take corrective steps to achieve the target of Rs.11,775 crore for 2010-11.
Mr. Rosaiah said while the performance of Annual credit Plan for 2009-10 was impressive, certain schemes like Backward Classes Welfare Finance Corporation (35 per cent) did not get the coverage they deserved.
Agriculture Minister N. Raghuveera Reddy urged banks to take up crop insurance on a priority and also to ensure that 100 per cent tenant farmers were covered.
SLBC president and CMD Andhra Bank R. S. Reddy said that only 10 districts had achieved 100 per cent coverage under financial inclusion programme and suggested June 30 as the final cut off date for declaring the State as 100 per cent financially included.