Help SSIs improve technology, Govt., banks told

By Our Special Correspondent

BANGALORE, SEPT. 28. A suggestion that commercial banks and the State Government take effective steps to popularise the technology upgradation fund scheme, to improve the technology adopted by the small-scale sector, was made by Mr. K. Vijayaraghavan, Regional Director of the Reserve Bank of India (RBI), here on Friday.

He made the suggestion in the light of the instruction on incentives, issued by the RBI, which included 12 per cent subsidy to commercial banks and State financial corporations on loans advanced to the small-scale sector to improve technology.

Mr. Vijayaraghavan was addressing the 79th meeting of the State- level Bankers' Committee (SLBC).

Presiding over the meeting, Mr. D.T. Pai, Chairman and Managing Director of Syndicate Bank and SLBC Chairman, said that during the first quarter of 2001-2002, banks disbursed Rs. 1,838 crores under the priority sector, against the annual target of Rs. 6,638 crores, achieving 27.69 per cent of the target under the annual credit plan.

He said that under the primary sector, banks disbursed Rs. 1,388 crores against the annual target of Rs. 4,175 crores -- an achievement of 33.25 per cent of the target. The disbursal under the crop loan component was Rs. 1,239 crores, which was 40.32 per cent of the target, he added.

Kisan credit cards: Mr. Pai said lending to farmers through credit cards, to meet the requirements of seasonal agricultural operations, was being encouraged in view of its advantages to them. He added that commercial, cooperative, and regional rural banks issued 2.34 lakh ``kisan credit cards'' in the first quarter, with a limit of Rs. 739.66 crores.

Referring to the high percentage of ``overdues'' under government-sponsored schemes, particularly the Prime Minister's Rozgar Yojana and the SGSY, he said that was a cause for concern and also one of the reasons for the slow progress of implementation of the schemes. The percentages of overdues under the two schemes were as high as 67.70 and 70.88, respectively. He appealed to the Government to instruct the deputy commissioners to assist banks in the recovery of loans.

Mr. Pai also referred to the concern of banks over non-performing assets, and said the issue should be given special attention.

Mr. S.C. Kuntia, Secretary, Department of Finance, said the State Government had prepared a medium-term fiscal plan from 2000-2001 to 2004-2005 to restructure the economy and achieve a growth rate of at least eight per cent a year in real terms.

Mr. S.M. Mehta, Chief General Manager, National Bank for Agriculture and Rural Development, said Rs. 67 crores had been released to the Government. Release of an additional Rs. 35 crores was being considered. The funds would help the Karnataka Power Transmission Corporation Ltd. to give electricity connections to 30,000 more pumpsets. One lakh farmers were on the waiting list for power connections, he added.

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Section  : Southern States
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