Hyderabad, July 18: The Chief Minister, Mr K Rosaiah, has said that he would seek that crop loans to be sanctioned directly to the tenant farmers under certain guidelines whereby they would be able to obtain loans at 7% with other benefits and also get the benefit of crop insurance. He said the benefits of crop loans at low interest are now being cornered by the landlords instead of the actual farmers who cultivate the land since many of them are tenant farmers.
He will seek the guidance of the Centre, Reserve Bank of India and cooperation of all Banks on the issue.
The Chief Minister will highlight some of the crucial issues concerning the State at the Southern Zone Chief Ministers’ meeting with Union Finance Minister Pranab Mukherjee on Tuesday. The crucial meeting will be attended by the Chief Ministers or Finance Ministers of the Southern States of Andhra Pradesh, Tamil Nadu, Karnataka and Kerala and Union Territories of Puducherry, Andaman and Nicobar Islands and Lakshadweep. All the CEOs/CMDs of Public Sector Banks/Financial Institutions, Reserve Bank of India Deputy Governor and NABARD Chairman will also attend the meeting to be held at Jubilee Hall.
The Chief Minister today held a brief meeting on the arrangements and issues to be raised at this important meeting with the Chief Secretary, Mr S V Prasad, the Special Chief Secretary (Finance), Mr G. Sudhir and other top officials.
The Chief Minister said that he will also focus on loans without collateral security to Micro, Small and Medium Enterprises (MSMEs). He said at least a certain percentage of bank loans given to MSME sector should be under the Credit Guarantee Trust for Small and Medium Enterprises (CGTSME) scheme so that the young entrepreneurs seeking self-employment will get loans up to Rs.One crore without any collateral security.
The Chief Minister said the Centre provides 2% interest subvention on crop loans extended by the banks. Due to severe drought (Kharif 2009) in the State and floods (rabi-2009-2010) the crop loans were rescheduled. The Chief Minister wants the Government of India to consider extension of the interest subvention of 2% for these loans also so that banks charge only 7% interest to the farmers.
Mr Rosaiah said he will also seek that the service charges at 2% for SMART cards for NREGA beneficiaries which are now being paid by the State Governments should be either waived by the banks or be paid by the Government of India. The Chief Minister will also raise other important issues concerning the State.
The Chief Ministers or Finance Ministers of other States will highlight the financial issues confronting their States and the CMDs of Public Sector Banks and Union Finance Minister will respond to their queries and problems.
Agenda for the meet includes State-wise flow of Credit and Credit-related parameters like Agriculture credit, MSME credit, Housing and Education Loans, credit to weaker sections and minority communities and CD ratio etc. The agenda also includes financial inclusion like State wise Bank branch network and unbanked blocks, State-wise financial inclusion plan for 2010-12, Bank SHG linkage programme, NREGA payments and State Government subsidies/benefits payment through banking system.
Besides, the agenda includes progress of Centrally-sponsored schemes in each State like Swarnajayanti Gram Swarogar Yojana (SGSY), Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Prime Minister’s Employment Generation Programme (PMEGP), Revival package for Short Term Cooperative Credit Structure, Implementation of Aam Admi Bima Yojana, Implementation of Co-Contributory Pension Scheme by the States for Unorganised Sector workers under the Swavalamban Pension Scheme of Government of India and so on.
The Chief Minister asked the Chief Secretary and other officials to make all arrangements to make the Southern Zone State Chief Ministers’ meeting a success.
———NSS