So This is what AP’s new Credit Plan Looks Like

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The credit plan for the state of Andhra Pradesh for the fiscal year 2017-18, has finally been revealed by Chief Minister, N Chandrababu Naidu.

The credit plan for the state of Andhra Pradesh for the fiscal year 2017-18, has finally been revealed by Chief Minister, N Chandrababu Naidu. It is 14.04% higher than the credit plan for last year and amounts to a whopping INR 166806 crores. INR 87471 crores from this will be allocated to the agricultural sector which will also include agriculture term loans, agriculture infrastructure, short term production credit finance to tenant farmers etc.

While addressing the gathering of 199th State Level Bankers’ Committee that was held on 16th June, the CM said that the bankers should make sure to offer loans to the eligible farmers as the agricultural sector majorly functions on credit. He added that the tenant farmers should be allocated at least 10% of the credit plan. He went on to say that all the farmers should be able to get the amount they request for such that they are spared the effort of borrowing money from money lenders at high interest rates. He added that since the weather department is predicting good monsoon for the state, efficient disbursement of the credit would ensure a profitable Kharif season.

According to the credit plan, an amount of INR 25000 crores will be allotted to the MSME sector while the priority sector will have to suffice with INR 126 crores. An amount of INR 40000 crores will be allotted to the non-priority sector.

The Chief Minister said that the farmers should use the geo-tagging technique to update their progress real time and directed the bank officials to release the funds based on these updates. He added that the state government will encourage the farmers to update their progress but it should be the onus of the banks to formulate a method to produce the required loan amount and to issue the Certificate of Cultivation. According to the CM, an integrated system should be created to account for the beneficiaries in order to avoid miscreants from availing the various benefits that are offered under the interest subvention scheme. He added that the land owners, who prevent their tenant farmers from availing the loan facility, will have to bear the brunt of the law.

SS Rawat, the Social Welfare Secretary said that the whole system should be brought under a single platform which should include beneficiary monitoring, progress tracking and loan disbursement.

According to the CM, the credit plan implementation will be monitored by a committee that would soon be formed and would comprise of government and bank officials. He added that from June 28th onwards, this committee would come together for a meeting, every 10 days.

 

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