From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Dec 27: The National Bank for Agriculture and Rural Development (NABARD) has estimated Karnataka’s credit flow potential for 2012-13 to be of the order of Rs. 52,168 crore, marking an increase of 27 per cent over the previous year.

The projected a credit potential was Rs. 41,085 crore for the farm and non-farm activities in the State in 2011-12.

Karnataka’s Chief Secretary S V Ranganath released the State Focus Paper 2012-13 brought out by NABARD at a state credit seminar here on Tuesday.

The State Focus Paper estimated a credit flow potential of Rs. 52,168 crore in the State for the year 2012-13, an increase of 27 per cent over the previous year

The projected share of crop loan is Rs 24,290.13 crore, formed 47 per cent of the total potential estimated, followed by other priority sector – Rs 14,228.27 crore (27 per cent), agricultural term loan – Rs 9848.58crore (19 per cent) and non-farm sector – Rs 3801.14 crore (7 per cent).

The credit flow to crop loan sector for the year 2010-11 was Rs 17,982.25 crore and the target is Rs 17,440.67 crore in 2011-12.

The State government has declared the decade 2011-20 as the `Irrigation decade’ and set a target to mobilise Rs. 50,000 crore for creation of irrigation potential to enhance agricultural operations.

The credit flow to water resources sector in 2010-11 was Rs 1054.59 crore and the target for 2011-12 is Rs 1088.05 crore. The potential assessed for financing during 2012-13 is Rs 1096.02 crore.

In his keynote address at the seminar, NABARD Executive Director B S Shekhawat highlighted the need for improving the per hectare credit in the State from the present level of around Rs. 23,000.

Shekhawat said increased flow of agriculture term loans would facilitate capital formation in farm sector. He told bankers to exploit the full potential of around Rs. 3750 crore in the micro-finance sector as compared to the ground level credit flow of around Rs. 1400 crore at present. CEOs of public and private sector banks attended the seminar.

Agrarian distress could be effectively addressed by ensuring enhancedcredit flow to three lakh hectare of dry land developed on watershed basis in the State.

He suggested that the state government may consider strengthening investment in areas of drinking water, setting up technical universities, post harvest management, and processing infrastructure.

Uma Shankar, Regional Director, RBI, Bangalore, Syndicate Bank Chairman and Managing Director Basant Seth, CEOs of public and private sector banks, principal secretaries and secretaries of various departments and representatives of NGOs participated in the seminar.