Nabard RIDF-VIII Sanctions Rs 2,577 Crore To 20 States

Mumbai, December 23: | Updated: Dec 24 2002, 05:30am hrs
The National Bank for Agriculture and Rural Development (Nabard) has sanctioned Rs 2,577.39 crore to 20 state governments as on December 20, 2002 under the Rural Infrastructure Development Fund-VIII (RIDF-VIII).

Out of the total allocation of Rs 5,500 crore during the year 2002-03, Rs 1,100 crore has been sanctioned for reforms undertaken by state governments.

With this, the cumulative sanctions to state governments amounts to Rs 25,990.71 crore, out of a cumulative corpus of Rs 28,500 crore since 1995-96.

Meanwhile, Nabard is planning to convert some loans extended for the kharif season in drought-affected states into term loans following the recent announcement made by Prime Minister Atal Bihari Vajpayee to provide relief to farmers.

Cooperative and regional rural banks have together lent over Rs 13,000 crore of which Nabard has refinanced over Rs 5,000 crore, Nabard chairman YC Nanda said.

However, the estimate and modalities for conversion were being worked out, he added. The Government last month has decided not to recover crop-loans, including interest, in the current fiscal and set up a Rs 500 crore corpus to help plantation growers following the failure of the South-west monsoon.

Subsequently, the Reserve Bank of India also directed commercial banks to not to recover crop loans in the drought-affected states in the country.

The principal amount of crop loan should be converted into a term-loan and would be recovered over a period of minimum five years (earlier three years) in case of small and marginal farmers and four years in case of other farmers, Nabard stated.