Date:20/11/2008 URL: http://www.thehindu.com/2008/11/20/stories/2008112051960300.htm

Other States - Puducherry

Rs. 651.80-crore credit linked plan drawn up for Puducherry

Staff Reporter

Chief Minister Vaithilingam released the NABARD plan

— Photo: T. Singaravelou

HIGHER OUTLAY: Chief Minister V. Vaithilingam releasing the potential-linked credit plan prepared by NABARD in Puducherry.

PUDUCHERRY: The National Bank for Agriculture and Rural Development (NABARD) has prepared a potential linked credit plan of Rs. 651.80 crore for 2009-10 for the Union Territory. Chief Minister V. Vaithilingam on Wednesday released the credit linked plan in a function held at the Chief Secretariat.

When compared to the credit plan of Rs 550.78 crore for the current financial year, the proposed credit plan for the next fiscal was 18.3 per cent higher, a release from NABARD said. Of the total credit plan, an amount of Rs. 333 crore would go for financing projects in sectors such as retail, trade, small business, education, housing, consumption and financing of self-help groups.

The next priority sector under the credit linked plan had been identified as non-farm segment including agro and food processing, for which an amount of Rs. 168.30 crore has proposed. Agriculture loan accounts for Rs 150. 80 crore, of which crop loan would be Rs 94.70 crore and term loan for agriculture and allied activities for Rs 56.10 crore, the release said.

Of the six blocks in the Union Territory, Reddiayarpalayam block accounted for 25.6 per cent, Karaikal 21.7 per cent, Karikalampakkam 21.3 per cent, Villianur 20.6 per cent, Yanam 5.6 per cent and Mahe 5.1 per cent of the total potential linked credit plan, it said.

The highlights of the plan document included a report on the agriculture scenario in the Union Territory. The net sown area has declined from 24330 hectares to 20713 hectares.

The primary sector’s contribution to the Gross State Domestic Product was less than five per cent.

Overall the credit absorption capacity of the State under priority sector lending had increased.

The credit for priority sector which was Rs 172 crore in 2003-04 had increased to Rs 559 crore in 2007-08. While the potential for credit for crop production was relatively limited, the allied activities under agriculture, dairy and fisheries facilitating capital formation was encouraging, the plan document said.