NABARD sanctions Rs36,000 crore in 'AP credit plan'

Hyderabad, Mar 5 (UNI) Andhra Pradesh Chief Minister Dr Y S Rajasekhara Reddy today said National Bank for Agriculture and Rural Development (NABARD) has allocated Rs 36,000 crore to the state under '2007-08 credit plan', as against Rs 32,000 crore last year.

Participating in the state credit seminar by NABARD here, he said the bank has given priority to agriculture and allied activities sanctioning highest allocations of Rs 23,130 crore, while Rs 18,628 crore was earmarked for crop loans and Rs 6,268 crore allocated to other priority sector.

Stating that the state government has targetted to cultivate six lakh acres under micro irrigation next year as against 2.5 lakh acres brought under micro irrigation during this year, the Chief Minister urged the banks to reduce the interest rates on agriculture loans and take steps to prompt repayment of loans by the beneficiaries.

Rs 5000 crore bank-linkage loans would be distributed to the Self Help Groups (SHGs) this year, he said, adding NABARD should also lend more credit to the state to take up housing schemes in a big way.

He observed that banks would pave way and lead the country through innovation, various ways of reaching the unreached and making 'financial inclusion' a reality in a short span of time.

UNI