Annual Credit Plan to cross Rupees 1 lakh crore

Hyderabad: The Annual Credit Plan for 2017-18, which will be announced on Friday at the State Level Bankers Committee (SLBC) meeting, is set to cross Rs one lakh crore this year as the plan outlay for agricultural sector alone would be around Rs 70,000 crore.

On the request of the State government, banks in principle have agreed to disburse crop loans to the farmers to the tune of more than Rs 40,000 crore as against Rs 35,000 crore last year. Nearly 50 per cent of the total credit plan would be earmarked for crop loans and 20 per cent for term loans and agricultural allied activities this year.

Nearly 50 per cent of the total credit plan would be earmarked for crop loans and 20 per cent for term loans and agricultural allied activities and 30 per cent funds would be adjusted for micro and small enterprises, housing and education loans

Top officials of the Finance department told The Hans India that the banks had disbursed 100 per cent crop loans last year as the farming activity increased under the influence of good rains and weather conditions.

Officials said the Agriculture Department predicted the farm production would increase by 30 per cent this year also. According to estimates, the crop loan requirement would also grow in proportion due to the increase in farming activity this Kharif season.

The increase in high-tech poly house farming in all districts also requires huge funds to promote agriculture as a profitable profession under the allied activities. Officials said the loans for micro and small enterprises, housing and education loans would be adjusted in the remaining 30 per cent funds under the action plan.

The SLBC meeting to be chaired by Finance Minister E Rajendar and Agriculture Minister P Srinivasa Reddy would also hold talks on the status of the loan waiver scheme under which government waived nearly Rs 17,000 crore loans taken by farmers from scheduled banks.