Tamil Nadu

District Collector releases Potential Linked Credit Plan

KARUR: The Potential Linked Credit Plan (PLCP) for Karur district estimates the potential for priority sector lending by banks to be Rs. 1,351.25 crore for the next financial year. Collector J. Umamaheswari released the plan, prepared by the National Bank for Agriculture and Rural Development (NABARD), while Assistant General Manager, Reserve Bank of India, S. Velusamy received the first copy.

She urged the bankers to expedite the disbursal of credit to deserving and eligible applicants under various schemes and categories. She was speaking at the district level consultative committee meeting for bankers for the third quarter here on Thursday.

Speaking on the occasion Dr. Umamaheswari observed that a sum of Rs. 6.03 lakh has been disbursed under SGSY. In respect of economic activity, 22 self help groups have been sanctioned Rs. 1.65 crore while another 75 groups were waiting to receive credit. In respect of individuals a sum of Rs. 5.75 lakh has been disbursed to 58 applicants.

Under the credit linkage to self help groups, target has been fixed to disburse Rs. 28 crore to credit link groups under various schemes. Up to October 2008, 3,212 SHGs have been credit linked to the tune of Rs. 25.47 crore, Dr. Umamaheswari said.

The Collector said that under the TAHDCO schemes 130 individuals and 93 group loans have been sanctioned and disbursement would take place shortly.

She also pointed out that so far 10,510 kisan credit cards have been issued in the district.

District Development Manager, NABARD, R. Sankaranarayanan, detailing the salient features of the plan, said that it has been assessed that half the population in the district was engaged in activities other than agriculture and hence the credit potential for non-agricultural activities has been assessed at Rs. 1,055 crore.

The priority sector lending potential has been pegged at Rs. 1,351.25 crore. The potential for crop loan and other term loan has been estimated to be Rs. 210 crore and Rs. 86 crore respectively.

Major constraints in stepping up credit to agriculture include severe limitations in tapping groundwater potential, huge backlog in energizing pump sets, inadequate fodder cultivation, insufficient storage facilities and erratic power supply.

The potential document also stated that banks needed to increase coverage of farmers under the Kisan Credit Card scheme, extend more credit for establishing micro irrigation management system, encourage agri clinics, nurseries and agro processing activities towards value addition of products.

The PLCP presented a comprehensive picture of the physical potential that could be translated into credit potential. The document also identified the initiatives and support required to realize the potential. The PLCP would form the basis for preparing the annual credit plan for the next year.

The PLCP has been prepared taking into account the present and future infrastructure, policy initiatives of the governments, thrust areas identified for development, as also the strength and weakness of the financial institutions.

Mr. Sankaranarayanan said that detailed discussions with the government departments and agencies as also with a cross section of the farming community and entrepreneurs preceded the preparation of the plan.

Chief Regional Manager, Indian Overseas Bank, S.H. Kesava, Project Officer, District Rural Development Agency, S. Namagiri, Project Officer, Mahalir Thittam, S. Ayyaru, and Lead District Manager K. Chandrasekaran spoke.

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