CM asks NABARD to rationalise its interest rate

Shimla, July 16 (UNI) Himachal Pradesh Chief Minister Virbhadra Singh today underlined the need for rationalising the interest rates of NABARD for farmers and weaker sections of society, besides treating all Special Category States uniformaly.

Addressing the Silver Jubilee celebration function of the bank here, he said the bank should also carry out a survey to access as to what extend it had achieved the objective of rural credit schemes since the time of its inception.

Mr Singh said the bank had been set up with an intention to help the farmers and weaker sections of the society for providing loan facilities to them at a nominal rate of interest and help in uplifting them socially and economically.

''The objective was yet to be achieved.'' He said that the formula of the Centre adopted for the Special Category States also needs to be replicated by the bank wherein it was funding schemes which consisted of 90 per cent grant and 10 per cent loan.

The idea behind declaring of some of the under-developed states as Special Category State was mooted with a view to provide financial assistance till the time all such states were self-reliant, he said.

He said Himachal should be provided funds on the pattern that was being made available to the North Eastern States.

The Chief Minister said hilly states cannot be equated with the other states in terms of norms fixed for developmental loans, since their geo-physical conditions were different.

Besides, the extreme climatic conditions, most of the area was difficult, inaccessible and backward with a working season of four to five months in a year where carrying out developmental activities was a Herculean task, he said.

Mr Singh said Himachal was agrarian state with over 90 per cent of its population dependent on agriculture and allied activities for their livelihood.

The bank should adopt liberal and sympathetic attitude towards the farming community and provide them loan at minimum rate of interest keeping in view their paying capacity, he said.

He said the technicalities needed for availing the loan facilities also required to be simplified and liberalized besides adopting one time settlement policy for recovering the loans from the small and marginal farmers.

The Chief Minister felicitated the bank authorities on completing 25 successful years of their service to the nation and thanked them for their cooperative attitude towards the financial proposals of the state.

Several ministers and prominent people were also present on the occasion.

UNI