VIJAYAWADA: Minister for Agriculture Kakani Govardhan Reddy released the State’s focus paper prepared by the National Bank for Agriculture and Rural Development (NABARD), projecting a credit potential of Rs 2.86 lakh crore for the financial year 2023-24, during the State Credit Seminar organised in Vijayawada on Thursday.
It may be noted that the credit potential assessed acts as a roadmap for banks to extend loans to priority sectors as mandated by RBI and for government departments for providing funds to bridge key infrastructure gaps.NABARD chief general manager MR Gopal highlighted that credit plays an important role in the development and planning process.
Elaborating, he said the State’s focus paper is prepared every year to map the credit potential under existing as well as new activities for boosting the rural economy. Stating that the focus paper would help bankers in preparing a roadmap for enhancing credit flow into the State, he explained the document will also help the government to identify investment priorities, especially in the infrastructure sector.
The credit potential for 2023-24 fiscal is 12% more than what was assessed for FY 2022-23 by NABARD. Of the total, credit potential for the agriculture sector has been assessed at Rs 1.82 lakh crore, forming 64% of the total potential identified under priority sectors.
Crop loan potential of Rs 1.35 lakh crore have been identified, while the potential for agriculture and allied term credit has been assessed at Rs 34,000 crore, including major components like animal husbandry (Rs 15,618 crore), farm mechanisation (Rs 4,156 crore), fisheries (Rs 4,517 crore) and horticulture (Rs 3,642 crore), food processing (Rs 4,895 crore) and construction of storage and marketing infrastructure (Rs 3,273 crore).
A sum of Rs 59,496 crore credit potential has been assessed for MSME (Micro, Small and Medium Enterprises) sector and Rs 44,476 crore under other sectors with components being housing (Rs 18,502 crore), export credit (Rs 4,150 crore) & education (Rs 2,839 crore) NABARD CGM said the document also encompasses sector-specific interventions required by all stakeholders of rural development in the State. He urged banks, lead district managers, State Level Bankers’ Committee (SLBC) and government departments to ensure that the potential identified in the focus paper is duly taken note in the district credit plans for 2023-24 and all efforts are made by stakeholders to achieve the State credit plan.
Appreciating NABARD for supporting the State’s initiatives aimed at creating infrastructure in agriculture, irrigation, social and rural connectivity sectors, Kakani urged bankers to be aware of the various programmes and plans of the government to ensure that the credit plan prepared by them for FY 2023-24 factors in these initiatives.
He stressed on objective of achieving sustainable agriculture through credit support and capital formation.
Gopal said NABARD extended financial support of 28,500 crore so far in the current fiscal to the government, various corporations and banks.
The big numbers
Credit potential for financial year 2023-24 is 12% more than what was assessed for FY 2022-23 by NABARD. Crop loan potential of Rs 1.35 lakh crore has been identified, while potential for agriculture and allied term credit has been assessed at Rs 34,000 crore, including major departments like animal husbandry (Rs 15,618 crore), farm mechanisation (Rs 4,156 crore) and fisheries (Rs 4,517 crore)