The CM said the state government, under DBT schemes, has been depositing money into the accounts of the beneficiaries with a purpose. By arrangement
VIJAYAWADA: Chief Minister Y.S. Jagan Mohan Reddy on Thursday released the state-level bankers committee 2022–23 annual credit plan of Rs 3,19,480 crore, of which Rs 1,64,740 crore (51.56 per cent) is earmarked for agriculture.
The 219th state-level bankers committee (SLBC) meeting was chaired at the CM camp office by the chief minister. He said the economic turmoil caused by Covid-19 has badly damaged economic growth but there now are strong signs of a recovery.
The state’s annual credit plan for 2022-23 with a total outlay of Rs 3,19,480 crore also has the target to provide Rs 2,35,680 crore as loans to the primary sector.
The Chief Minister sought the support of bankers for using the drone technology in the agriculture sector as also for the construction of harbours and ports.
The CM said the state government, under DBT schemes, has been depositing money into the accounts of the beneficiaries with a purpose. He asked the bankers not to effect any cut from the money for any other purpose. He thanked the bankers for extending their support to the state government during the Covid-19 pandemic.
Jagan said this was the first year after Covid that economic growth is evident. The nominal GDP of the country for 2021-22 was Rs 237 lakh crore. The growth at current prices during that year as per the provisional estimates was 19.5 per cent. The inflation at 7.79 per cent is the highest witnessed in the last eight years and the inflation in rural areas was 8.38 per cent. Due to this, the Reserve Bank has increased the cash reserve ratio and repo rates. This will have an impact on the downtrodden people and a negative impact on manufacturing sector.
The CM urged the bankers to redouble their efforts to lend more credit to the state to support the downtrodden to enable them withstand the pressure of inflation.
Jagan said it is commendable that despite the constraints, the annual credit plan target for 2021–22 has surpassed to 133.19 per cent and added that the banks have achieved 167.27 per cent more than the target of annual credit plan in terms of agriculture term loan. The loans were doubled at 208.48 per cent for non- primary sectors.
He said the efficiency of the banks should be increased in areas like exports, education and housing. Banks must focus attention on why they couldn't achieve agriculture term loan targets in the Kharif season. He urged the bankers to take steps to achieve targets as rgards farm mechanisation and poultry and focus on providing loans to tenant farmers.
The Chief Minister said the state government has been providing Rs 10,000 as interest-free loan via banks to petty vendors and artisans engaged in traditional handicrafts production.
Banks have given loans to 14.15 lakh beneficiaries, he noted, and asked the bankers to continue with this endeavour.
The Chief Minister said banks have provided 90.55 per cent of the loans to MSMEs in 2021-21, which was less than the target. He urged the bankers to focus on this aspect too. He urged them to also focus on providing loans to the poor for constructing their houses and have a tie-up with TIDCO house beneficiaries. Construction of houses will help in the growth of the financial sector, the CM said.