Chief Minister Y.S. Jagan Mohan Reddy has said that the government laid emphasis on the mitigation of drought in Rayalaseema and north coastal districts, development of the Micro, Small and Medium Enterprises (MSME) sector and facilitating loans to every eligible farmer, among other thrust areas.
Addressing a State credit seminar where he released the State focus paper for FY 2022-23 prepared by the National Bank for Agriculture and Rural Development (NABARD), at his camp office on Wednesday, Mr. Jagan said banks should provide credit facilities to the extent possible as the government implemented a slew of welfare schemes, and insisted that the banking correspondents should play a greater role in the delivery of institutional credit.
Due priority should be given to the agriculture sector and making the Rythu Bharosa Kendras (RBKs) meet the financial needs of farmers with the involvement of banking correspondents. He observed in an ideal scenario, the quantum of loans being disbursed by banks should keep pace with the Gross Domestic Product (GDP) growth rate.
NABARD role
Mr. Jagan said the role of NABARD and other banks in the economic and social development of the State was prominent, especially in the strengthening of the rural economy during the COVID pandemic.
He said the government contemplated introducing drones in the RBKs to enable them to undertake various activities. Another focal point was the supply of protected drinking water to villages facing the fluorosis problem. Besides, social infrastructure was being created on a large scale in the education sector, for which funding by banks was crucial.
In order to improve the livelihood of the fishermen community, the government was constructing harbours, ports and fish landing centers, the Chief Minister added.
NABARD Chairman Chintala Govindarajulu said that funding of agricultural infrastructure was on top of the bank’s agenda, and hailed the initiatives taken by Mr. Jagan for the development of the cooperative sector.
He stressed the need for setting up a State-level cooperative training institute to help the banks improve their performance through a professional approach.
Ministers Peddireddy Ramachandra Reddy (Panchayat Raj and Rural Development), Buggana Rajendranath Reddy (Finance) and K. Kannababu (Agriculture), Chief Secretary Sameer Sharma and senior officials took part.
