NABARD estimates Credit Potential of Odisha at Rs. 71419.85 crore for 2018-19

Bhubaneswar: January 17:The annual State Credit Seminar of NABARD for 2018-19 on 17 January 2018. On the occasion, the State Focus Paper for the State was released, projecting an overall credit potential for the State of Odisha under Priority Sector at Rs. 71419.85 crore for the year 2018-19. Hon’ble Chief Minister of Odisha was the Chief Guest on the occasion. Hon’ble Finance Minister of Odisha; Shri Aditya Prasad Padhi, Chief Secretary, Govt of Odisha; Shri Tuhin Kanta Pandey, Principal Secretary, Finance; Govt of Odisha; Agricultural Production Commissioner, Govt of Odisha; GM, RBI; senior Govt officials, MD, OStCB; Chairmen of RRBs; controlling Heads of Banks, and other dignitaries attended the Seminar and participated in the deliberations. The State Focus Paper for 2018-19 and the Area Development Scheme for 2018-2023 prepared by NABARD were unveiled by Hon’ble Chief Minister.

In his welcome address, Dr K C Panigrahi, Chief General Manager, NABARD briefly explained the process of preparation of District level Potential Linked Credit Plans (PLPs), State level credit potential and the significance of the documents in credit planning of the State. He said that the document is well appreciated by all as it provides inputs to State Govt Deptts, various organisations/entities and banks in formulation of their policies and Programmes for ensuring enhanced credit flow. He highlighted the developmental financial assistance to the tune of Rs 14715 crore provided by NABARD in the State during last year and target of NABARD for the current financial year. During the current year, NABARD has hitherto extended financial support of more than Rs 11000 crore to the State Government for creation of rural infrastructure, to the banks as refinance for short term production loans and long term investment loans and to the State Civil Supplies Corporation for procurement of paddy from the farmers. While referring to the developmental and promotional activities undertaken by NABARD, he narrated NABARD’s role in SHG Bank Linkgage, promotion of JLG mode of financing, support by NABARD for Financial Inclusion in the State, etc. He made special mention about the efforts of NABARD for digitization of SHGs thorough ‘EShakti’ in 7 districts of Odisha and launching of water campaigns by NABARD in the 10 water stressed districts for awareness about water conservation and efficient use. Underlining role of NABARD for combating climate change, he informed that NABARD is implementing a GCF (Green Climate Fund) project in 15 vulnerable and backward districts. He also said that the Credit projections for Odisha for 2018-19 at Rs. 71419.85 crore is based on the potential assessed under various sectors and sub sectors in all agro climatic zones of the state. He solicited cooperation of State Govt., Banks and other stake holders towards for achieving the potential.

The Chief Guest on the occasion Hon’ble Chief Minister of Odisha expressed his happiness for the efforts of NABARD in preparation of the credit plan of Rs. 71419.85 crore for the State for 2018-19 by taking into account the available and planned infrastructure, existing policies and schemes of Govt. demand and supply conditions etc. He urged banks and other stakeholders to refer the credit plan documents prepared by NABARD and play a pro-active role in achieving the credit targets. He applauded NABARD for the developmental financial assistance provided to the State during the last financial year. He also appreciated NABARD for its initiative in implementing 51 Tribal Development Projects and 108 Watershed Development Projects in the State, thus benefitting about 94,000 poor families.

 

The Guest of Honour Hon’ble Finance Minister of Odisha exhorted all stakeholders to focus on agricultural and rural development addressing the areas where improvement is required. He stated that the State Credit seminar is a suitable platform for discussions on plans and projects by all stakeholders to give meaningful direction to the development process of the State. He thanked NABARD for the credit planning exercise and urged the banking network in the State to realise the planned credit potential. He appreciated the role of NABARD in the areas of SHG Bank linkage, JLG financing, financial inclusion etc.

 

Shri A. P. Padhi, Chief Secretary, Govt. of Odisha congratulated NABARD for publishing a well-researched document and called for optimum exploitation of the credit potential. He expressed concern about the negative growth in credit flow for agriculture and MSME sectors during 2016-17 and requested banks to reverse the trend and ensure better inclusive growth. He highlighted the gaps in banking sector such as poor banking network, declining Credit Deposit ratio, etc. and urged banks to take necessary measure to enhance credit flow for the desired sectors of the rural economy. He mentioned that Odisha is the biggest beneficiary of RIDF. He also praised NABARD for its implementation of WADI, establishment of Farmers’ Collectives, impronving the health of Rural Financial Institutions etc.

 

Shri Tuhin Kanta Pandey, IAS, Principal Secretary, Dept. of Finance, GoO in his address emphasized on efficient intermediation by banks for ensuring timely and adequate credit to the priority sectors of the economy. He mentioned that despite the State having 4.7% of the total geographical of the country, the share of agricultural credit in Odisha is only 2.5% of total credit flow to agriculture in India. He requested State Govt Department, RBI, NABARD and all banks to ensure enhanced credit flow for agriculture. He expressed that despite frequent occurrence of natural calamities affecting the crops, the production and productivity of agriculture in the State has shown improvement. He emphasized on improvement of Credit Deposit ratio and augmentation of credit to the emerging sectors of the economy. He urged banks to prepare their Annual Credit Plan in accordance with the potential linked credit plans prepared by NABARD.