BHUBANESWAR: The National Bank for Agriculture and Rural Development (NABARD) on Monday projected a credit potential of Rs 1,10,735 crore for Odisha under priority sector for 2021-22 fiscal.
The credit potential estimate for the ensuing financial year is about 22.5 per cent (pc) more than the projection made by NABARD for this fiscal. The bank had made a projection of Rs 90,395.69 crore credit requirement for the State for 2020-21.
Of the total credit potential for the priority sector, credit to agriculture sector was pegged at Rs 46,460.40 crore which is 7.34 per cent more than the projection of 2020-21.
Keeping in view the high credit growth in MSME sector with a potential to generate rapid employment in the post-COVID period, a projection of Rs 41,867.10 crore credit has been made for the sector with a growth of 37.46 pc over the current fiscal.
In order to improve flow of credit to SHGs, the projection for loan under the category has been kept at Rs 6,295.77 crore. It has been targeted to double the SHG loan from the present level, said the State Focus Paper.
Discussing the broad strategy for realising the potential for credit, the paper suggested special credit plans to augment the credit flow in newly developed irrigated areas with plans for crop diversification and water saving mechanism.
"Allied sectors like commercial dairying, goatery, fisheries and horticulture need to be developed in clusters to optimise availability of various support services and better market linkage. Agri Incubation Centre may be developed to promote start-ups in greenfield areas. Skill development and entrepreneurship development should be taken up for building a solid foundation for the private capital formation," the paper said.
Releasing the paper at the Annual State Credit Seminar here, Finance Minister Niranjan Pujari emphasised the need to increase agriculture term loan in allied sectors such as animal husbandry, poultry and fisheries leading to asset formation and diversification of income basket of farmers.
He also advised RBI and all the bankers to increase their banking outreach in unbanked areas of the State in order to help the government in effective implementation of various developmental programmes and increase the scope of digital banking and financial inclusion.
NABAD Chief General Manager C Udaya Bhaskar said the credit projection for priority sector forms the basis of Annual Credit Plan. Principal Secretary of Finance Ashok KK Meena said Odisha has been performing consistently well compared to the national level GDP. However, the share of the bank credit in the GSDP of the State is much below than the contribution of credit to national level GDP, he added.
Fund flow
Rs 46,460.40 crore for agriculture
Rs 41,867.10 crore for MSMEs
Rs 6,295.77 crore for SHGs
Rs 90,395.69 crore projected for 2020-21
It has been targeted to double SHG loan