The Hindu
Mangalore, Jan 3: The Rs 1,603.22 crore potential linked credit plan (PLP) for Dakshina Kannada released by National Bank for Agriculture and Rural Development (NABARD) for 2007-08 envisages big potential for lending to the agriculture sector.
The NABARD has prepared the PLP taking into account the existing infrastructure and support services, credit delivery network and the ground-level credit flow during the past three years.
According to Praveen Raj Udupa, Assistant General Manager, NABARD, the total potential for agriculture loan had been assessed at Rs 469.78 crore, including Rs 307.56 crore for crop loan and Rs 162.22 crore towards term loans.
The potential credit for non-farm sector is Rs 410.52 crore and other priority sectors Rs 22.92 crore. Share of total agriculture loan in the PLP is 29.3 per cent and that of other priority sectors is 45.1 per cent.
Among the sub-sectors, potential for land development is the highest at Rs 39.33 crore (2.5 per cent), followed by plantation and horticulture at Rs 34.54-crore (2.2 per cent), and minor irrigation Rs 33.12 crore (2.1 per cent).
Apart from traditional activities, the PLP projections also include potential for medicinal and aromatic plants, floriculture in plantation and horticulture sector and watershed approach for land development.
In view of thrust given by the Union Government for agro processing sector, a separate chapter has been included on this aspect. Potential assessed for non-farm sector, including agro-processing food, is Rs 410.52 crore (25.6 per cent) with Rs 143.50 crore (nine per cent) for agro processing and Rs 126 crore (7.8 per cent) for Small-scale industries sector.
The PLP also sees big potential for other priority sectors such as housing and education loans. As per the recent Reserve Bank of India guidelines, the PLP would form the base document for the bankers of the district for preparing their branch-level plans aggregating to their district credit plan (DCP).
The bankers who met recently in this regard, after detailed discussions, have agreed to adopt the PLP as implementable DCP for 2007-08, and will prepare their branch plans under the guidance of lead district manager.