From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Jan 13: National Bank for Agriculture and Rural Development (Nabrard) has estimated a credit flow potential of Rs 31,254.74 crore under priority sector for Karnataka during 2010-11.
The priority sector credit flow for the coming year marks an increase of 13.5 % over the previous year.
Of the total estimated credit flow, the share of crop loan constituted 45.6 % of the total while other priority sector was 28.5 %, agricultural term loan at 14.9 % and non-farm sector at 11 %.
Nabard key officials gave these details at the state credit seminar on Wednesday. The seminar is a forum consisting of state government departments, banks and other development agencies for discussing the NABARD-prepared State Focus Paper.
The State Focus Paper contains the aggregation of exploitable potential, estimated for all districts for the coming year.
Nabard Chairman Umesh Chandra Sarangi, however, said there was a need to enhance the potential of agricultural term loan by Rs 2,000 crore (from the projected Rs 4,667 crore or 14.9 %) and the total to Rs 37,000 crore from Rs 31,254.74 crore.
Additional Chief Secretary and Finance Secretary M R Srinivasamurthy said the potential estimated for the agricultural term loan is rather inadequate to stimulate growth in the sector and sought it to be raised to at least Rs 7,000 crore to Rs 8,000 crore.
He indicated that Nabard would appoint managing consulting firm, Boston Consultancy Group (BCG), to prepare a roadmap for its restructuring.
"We are in the process of appointing BCG for some more time. It will start its study,’’ Sarangi said in response to questions from reporters.
Saradgi made it clear that there was no proposal for disinvestment of Nabard at the moment. ``At least, I am not aware of it,’’ he said.
Nabard would undertake an overall repositioning exercise and is looking at various possibilities that make it a viable commercial entity.
Noting that Nabard is investing its profits into various development funds in the areas of watershed, cooperative and technology transfer to farmers, among others.
"We need to have continuous flow of money in these funds to enable us to expand activities in large scale all over the country,’’ he said.
He said a report of the Task Force on Farmers’ Indebtedness would be submitted to the Centre in March.
Sarangi, who is also the chairman of the Task Force, said already it had held two meetings and one more meeting would be held next month to discuss various issues confronting the farmers in the country.
The report, comprsing of various recommendations for improving the farmers’ livelihood, would be submitted to the Centre in March, he added.
MURUGESH NIRANI HOLDS INTERACTION MEET WITH BANKERS:
Meanwhile, Karnataka’s large and medium industries minister Murugesh R Nirani, held a separate interaction meeting with chairman cum managing directors, executive directors and regional heads of leading banks, financial Institutions engaged in financing infrastructure and industrial development in the state.
The interaction meet was organised with the main objective of getting the feedback for the ensuing Global Investor’s Meet scheduled on June 3 and 4, 2010.
The Banking and inancial Representatives suggested lot of inputs for the proposed Investors Meet and the minister promised to include the Banking Community in the Global Investor’s Meet 2010.
The interaction meet was attended by Principal Secretary, Commerce and Industries Department V P Baligar, Commissioner for Industrial Development and Director of Industries and Commerce Dr Raj Kumar Khatri, Managing Director, State Bank of Mysore, Dilip Mavinkurve, Executive Director, Canara Bank, Jagadish Pai, Executive Director, IDBI Bank Limited, T R Bajalia, General Manager and Convenor, SLBC, G Ramanathan, and General Managers, Zonal Managers and Divisional Managers of other leading Banks..