The Andhra Pradesh Chief Minister Mr N Kiran Kumar Reddy today requested the Centre for early release of funds towards relief in the Nilam Cyclone hit areas and said the loss caused by the cyclone has been assessed preliminarily at about Rs.1550 crore. He was speaking at the joint meeting of the Chief Ministers and Chief Executives of Public Sector Banks and Financial Institutions here today.
The Chief Minister thanked the Central Government for increasing crop loans target by Rs.1 lakh crore. He requested Central Government to extend interest subvention scheme to rescheduled crop loans also including for licensed cultivators. He also requested for reduction of premium rates under National Agricultural Insurance Schemes (NAIS). The Chief Minister requested that interest subvention scheme be made applicable to Stree Niidhi also. He said Banks are reluctant to sanction bridge loans to the beneficiaries and this was hampering progress of the housing programmes in Andhra Pradesh. Mr Kiran Kumar Reddy requested the Chairmen of banks to meet the credit requirements of the deserving sections. He requested the top management of the bank to take steps to fill up the credit gap to the minorities.
Mr Reddy thanked the Union Finance Minister for convening this joint meeting of the Chief Ministers and Chief Executives of Public Sector Banks and Financial Institutions to discuss the implementation of various developmental programmes in which the active involvement of State Governments and Public Sector Banks is necessary.
He commended the banking community for its pro-active role in disbursing credit as well as implementing Government welfare schemes. Banks have exceeded the targets set under the Credit Plan during the past three years in Andhra Pradesh.
The Credit Plan target for the year 2012-13 is Rs.82,167Crs under the Priority Sector lending with an overall target of Rs.1,10,945 Crs.
The Chierf Minister said the state Government has introduced Interest free crop loans up to 1 lakh which will benefit one crore farmers. From Khariff-2012, farmer need to repay only principal amount and the Government will repay interest portion on his behalf. “Last year we have achieved Rs.37,000crs under crop loans and this year we are expecting to cross Rs.42,000crs. I thank the Central Government for increasing crop loans target by Rs.one lakh crore”.
He said Rs.2000 crore earmarked for the licensed cultivators but only Rs.200 crore disbursed so far. During natural calamities, for rescheduled loans, banks are charging interest rates from 12.5% to 13.5% which is very high, he said and requested the Central Government to extend interest subvention scheme to rescheduled loans also.
The Chief Minister explained ion details the performance and achievements of the State Government in regard to Women Self Help Groups, Stree Nidhi, Flow of Credit to Micro and Small Enterprises, Housing programme, Weaker section lending, etc., and requested the Chairmen of banks to take urgent steps to meet the credit requirements of these deserving sections.(NSS)