Nabard pegs 20% hike in Odisha's credit potential, at Rs 90,395 cr

Topics NABARD | Odisha  | Odisha economy

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National Bank for Agriculture & Rural Development (Nabard) has pegged Odisha's credit potential at Rs 90,395.69 crore for 2020-21.

The credit plans enlisted in Nabard's State Focus Paper released Monday envisages an increase of around 20 per cent over credit projection of 2019-20. Out of the total credit potential for priority sectors, Rs 43,282.11 crore has been assessed under agriculture. Emphasis has been given to recalibrate the potential assessment keeping in view the recent trends in achievement of ground level credit.

Credit potential under agriculture constitutes 47.88 per cent of the total priority sector. Of this, Rs 40,227.79 crore (92.94 per cent) is estimated under farm credit, which comprises both crop loans and term loans for agriculture and allied activities. Besides, credit potential under agriculture infrastructure and ancilliary activities have been estimated at Rs  1,603.94 crore and Rs 1,450.38 crore, respectively. Moreover, out of the total credit potential assessed under agriculture sector, 31 per cent is under term loans. Credit potential under MSME sector has been assessed at Rs 30,457.99 crore, constituting 33.69 per cent of the total priority sector. Other sectors consisting of export credit, education, housing, renewable energy, others and social infrastructure have 18.43 per cent share in the total credit potential under priority sector.

While assessing the projected credit potential under various sectors and sub-sectors in the state, the State Focus Paper indicates the critical infrastructure gaps and makes suggestions with a view to overcome the constraints.

On the occasion of  release of the State Focus Paper, Odisha's finance minister Niranjan Pujari stressed on the need to widen agriculture term loan finance in other allied sectors such as animal husbandry, poultry and fisheries, leading to asset formation and diversification of income basket of farmers. He also urged the banks to deepen their bank outreach to help the state government in effective implementation of various development programmes and enhance the scope of digital banking and financial inclusion across the state.  

Ashok  Meena, principal secretary (finance), Odisha  government, the importance of agriculture and allied sector potential in overall credit potential of the state, as two-third of state population is dependent on agri and allied activities. He also advised all the commercial banks to increase agri-term loan financing under various state government programmes and especially under Mukhya Mantri Kanya Utthan Yojana (MMKUY). Also, he urged upon the bankers to focus on Farmer Producer Organization (FPO) and Joint Liability Group (JLG) financing under agriculture and allied sectors and ensured full support of  the state government in working with banking sector in the state to improve the rural credit scenario. 

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