Nabard Estimates Rs 16,761 Cr Credit Potential For Priority Sector In TN

Chennai, January 25: | Updated: Jan 26 2003, 05:30am hrs
The potential-linked credit plan projection for the priority sector in Tamil Nadu for 2003-04, according to the National Bank for Agriculture and Rural DeveloPment (Nabard), is Rs 16,761.28 crore against Rs 12,350 crore in 2002-03.

"Considering the past trends in ground level credit, the credit flow during 2003-04 is expected to be about Rs 13,148.58 crore, (Rs 11913.49 crore in 2002-03), leaving a credit gap of Rs 3612.70 crore,'' Mr C R Patnaik, chief general managaer, Nabard, Tamil Nadu region, told newsmen here on Saturday.

Credit flow projections for 2003-04 in TN priority sector
Particulars Expected credit 2002-03 Potential for
2003-04
Credit projections 2003-04
Crop loans
4535.88
5480.54
4937.68
Minor irrigation
83.81
347.95
101.52
Land development
34.67
71.72
43.23
Farm mechanisation
120.98
385.41
15.01
Plantation, horticulture
131.21
228.02
156.75
Dairy Development
161.87
295.43
191.94
Poultry
36.76
89.18
47.07
Sheep, goat, piggery
41.85
112.41
59.96
Fisheries
14.27
36.82
17.69
Forestry, wasteland
5.64
40.03
11.01
Storage, market yard
18.77
58.94
21.06
Others
61.05
80.67
51.72
Total agri credit
5246.76
7227.12
5792.64
Non-farm sector
4242.03
6632.98
4786.26
Other priority sector
2424.70
2901.18
2569.68
Grand Total
11913.49
16761.28
13148.58

``With the increasing involvement of the banking sector, the credit gap is expected to narrow down, he added.

The potential assessed in the primary sector (agriculture and allied activities) for the year is estimated at Rs 7,227.12 crore. The credit extended by financial institutions under this sector during the past four years increased from Rs 3,477 crore in 1998-99 to Rs 5,284 crore in 2001-02.

During 2003-04, the credit flow to this sector is estimated at Rs 5,792.64 crore.

The potential assessed in the secondary sector for 2003-04 is estimated at Rs 6,632.98 crore. The credit flow to this sector during the past four years ranged from Rs 2,609 crore during 1998-99 to Rs 3,904.98 crore during 2001-02. The credit flow to this sector during the next fiscal is estimated at Rs 4,786.26 crore.

The potential assessed for the tertiary sector in the state is Rs 2,901.18 crore. The ground level credit flow for this sector during the last four years ranged from Rs 1,048 crore in 1998-99 to Rs 2,244 crore in 2001-02.

The credit flow to this sector is estimated at Rs 2,569.68 corore.

The credit projections and availability are presented in the `State Focus Paper: 2003-04', which is the aggregation of the exploitable potential estimated for the 28 districts in the state for the second year of the 10th Plan.

The paper also highlights the infrastructure and services sector gaps that have to be filled in through suitable strategies and policy changes.

All these issues would be discussed among the top-level state government officials and bank chiefs here on Monday.