VIJAYAWADA: Chief Minister YS Jagan Mohan Reddy launched the State Annual Credit Plan (ACP) for 2022-23 with an outlay of Rs 3,19,480 crore at the 219th State Level Bankers’ Committee (SLBC) meeting on Thursday. The ACP has earmarked 54% of the total outlay for the agriculture sector. It is targeted to lend Rs 1,64,740 crore to agriculture sector and Rs 2,35,680 crore to the primary sectors, which accounts for 73.76% of the credit plan outlay.
Speaking on the occasion, the Chief Minister said the Covid-19 pandemic had debilitating impact on the country’s economic development. The nominal GDP of the country for 2021-22 was Rs 237 lakh crore and the growth at current prices during the last fiscal as per the provisional estimates was 19.5%. The inflation at 7.79% is the highest in the last eight years. The inflation in rural areas is 8.38% and due to which the Reserve Bank of India has increased the cash reserve ratio and repo rates, he pointed out and said it will have a negative impact on the manufacturing sector, besides affecting the downtrodden sections.
Jagan urged bankers to redouble their efforts to lend more to support the downtrodden sections and enable them withstand the pressure of high inflation.The Chief Minister said it was commendable that despite the constraints, the ACP target for 2021-22 was exceeded to 133.19% and the banks had achieved 167.27% more than the target in terms of agriculture term loans and the loans were doubled at 208.48% for non-primary sectors. The efficiency of banks need to improve in certain areas like exports, education and housing, he stressed.
Provide more loans to MSMEs: Jagan to banks
The banks should focus on why they could not achieve the agriculture term loan target in Kharif season, he said and urged the bankers to take measures to achieve the targets in farm mechanisation and poultry. Priority should also be given to tenant farmers in providing loans, he asserted. Jagan said the State government has been providing `10,000 interest free loan to small vendors and artisans engaged in traditional handicrafts and the banks have given loans to 14.15 lakh beneficiaries and it should be continued. Stating that banks had provided 90.55% of loans to MSMEs in 2021-21, which was less than the target, he said the banks should lend more to MSMEs.
Jagan further requested them to focus on providing loan to the poor people for constructing houses and also to tie-up with TIDCO house beneficiaries. Focus on the construction sector will boost the growth of financial sector, he averred. The State government is committed to women’s empowerment. It has been implementing various schemes for the economic uplift of one crore women in the State. As women beneficiaries of the schemes are making timely repayment of loans, the banks should reduce the interest rate, he said. Jagan sought the support of banks for the use of drone technology in agriculture sector, construction of harbours and ports in the State.
Under D B T schemes, the government has been depositing money into the bank accounts of beneficiaries with a purpose. Hence, banks should not to cut the money from the amount for any other reasons, he said and thanked the bankers for extending support to the government during the Covid pandemic. Agriculture Minister Kakani Govardhan Reddy, Chief Secretary Sameer Sharma, Agriculture Special Chief Secretary Poonam Malakondaiah, SLBC convenor V Brahmananda Reddy, Union Bank of India Executive Director Nidhu Saxena, RBI Regional Director K Nikhila, NABARD CGM MR Gopal and representatives of various banks attended the meeting.