NABARD plans give Rs 10,000 crore to Punjab

The National Bank for Agriculture and Rural Development (NABARD) plans to disburse Rs 10,000 crore in the rural sector in Punjab, an increase of 25% from last fiscal.

In 2017-18, NABARD, the country’s apex financing agency for institutions that promote rural development, disbursed Rs 8,000 crore to the state, said chief general manager of the bank JPS Bindra. He said the refinance to various government agencies this year would be Rs 2,900 crore.

“To encourage diversification of crops, NABARD has prepared area development plans of Rs 1,918 crore for 2018-19 to promote dairy, vegetable cultivation, apiculture and mushroom growing, which will supplement farmers’ income,” said Bindra.

Replying to a query, Bindra said debt waiver schemes of the state government affects the banking system, particularly recoveries, while referring to the Punjab government farm loan waiver rollout. “It’s the initiative of state government and we can’t influence the decision,” he said.

In previous year, the bank provided assistance of Rs 444.82 crore to under rural infrastructure development fund (RIDF), sanctioned term loan of Rs 27.13 crore to Punjab Agro Industries Corporation Limited (PAICL) for the development of Mega Food Park at Ludhiana and Rs 317.4 crore to state transmission utility, said Bindra.

He said in the current fiscal, assistance of Rs 213.09 crore has already been sanctioned under the RIDF to the state government for constructing 71 roads, Rs 206.06 crore to the state warehousing corporation for creation of storage capacity and Rs 254.40 crore to four milk producers unions in 4 districts (Jalandhar, Ludhiana, Patiala and Rupnagar).

Bindra said NABARD will cover 3,000 villages to create awareness against stubble burning and will spend Rs 3 crore on the project.