Telangana’s credit plan outlay pegged at Rs. 1,86,035.60 crore; major share for agriculture sector

Published : June 30, 2021 12:23 IST

Telangana Finance Minister T. Harish Rao. Photo: MOHD ARIF

Telangana’s annual credit plan outlay for the 2021-22 financial year has been pegged at Rs.1,86,035.60 crore. Finance Minister T. Harish Rao released the plan during the 29th meeting of the State Level Bankers Committee (SLBC) in Hyderabad on June 28.

Of the total outlay, Rs.1,43,954 crore, or 77 per cent, has been earmarked for priority sector lending. Of this, Rs.91,541.71 crore, or about 63.59 per cent, is for the agriculture sector. In agriculture, credit to agricultural activities has been estimated to take up Rs.75,977.72 crore for 62.36 lakh accounts. Of this, Rs.59,440.44 crore has been earmarked for crop production, maintenance and marketing and Rs.16,537.28 crore for investment credit and allied activities. Agricultural term loans for infrastructure have been pegged at Rs.3,895.61 crore and those for the ancillary sector are at Rs.11,668.38 crore.

Harish Rao said that under the Rythu Bandhu scheme the Telangana Rashtra Samithi government had already deposited Rs.7,360 crore into the bank accounts of over 61 lakh farmers in just a week’s time. Highlighting the government’s innovative measures launched for farmers’ welfare, Harish Rao cautioned bankers against adjusting this “amount towards other loans due by farmers”. He said the Chief Minister had made it clear that the amounts under the Rythu Bandhu scheme “should not be diverted and banks should take steps to ensure that these amounts were credited into the savings bank accounts of farmers”.

Harish Rao directed bankers to ensure timely disbursal of farm credit to agriculturists for purchase of essential requirements such as seeds, fertilizer and other inputs.

Credit for the micro, small and medium Enterprises (MSME) segment has been estimated at Rs.39,360.86 crore, or a 27.34 per cent share of the priority sector advances. Of this, medium scale enterprises are to get credit of Rs.15,275.44 crore, small scale Rs.12,046.76 crore (for 5.01 lakh accounts) and micro enterprises Rs.12,038.66 crore.

Other sectors too have received significant allocations: education loans Rs.2,347.85 crore, housing loans Rs.8,640.24 crore, social infrastructure Rs.1,179.06 crore and renewable energy Rs.407.97 crore. The requirements of the remaining priority sectors have been pegged at Rs.876.07 crore.

Projecting the requirement of the non-priority sector at Rs.41,681.54 crore, or 22.41 per cent of the total credit plan, Harish Rao asked bankers to provide more Mudra loans to small businesses. He said the government was encouraging cultivation of palm oil and other varieties of crops and “steps had been initiated to speed up setting up of special food processing zones”.

Om Prakash Mishra, president of the SLBC and State Bank of India Deputy Managing Director, while presenting a report on the performance of banks, said that total deposits of banks grew by Rs.87,469 crore (18.05%) during the previous year and the total deposits currently stood at Rs.5,71,909 crore. Total advances grew by Rs.56,621 crore (9.92%) and advances of all banks were at Rs.6,27,039 crore. Mishra said that during the 2020-21 fiscal, banks had lent Rs.41,200 crore during the Kharif and Rabi seasons.

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