NABARD estimates Rs 2.25 lakh crore credit potential for priority sector in Gujarat for FY22

NABARD estimates Rs 2.25 lakh crore credit potential for priority sector in Gujarat for FY22

GJ Industry Review Team

In comparison to the current fiscal, the credit potential for the subsequent financial year is 20% higher, said DK Mishra, Chief General Manager (CGM), NABARD adding that the share of agriculture is attached at Rs 1.04 lakh crore which is about 46% of the total potential estimated.

National Bank for Agriculture and Rural Development (NABARD) estimated Rs 2.25 lakh crore credit potential for priority sector in Gujarat for the financial year 2021-22 in its state focus paper out on Thursday in presence of Chief Minister Vijay Rupani.

Compared to the current fiscal, the credit potential for the next financial year is 20% higher, states DK Mishra, Chief General Manager (CGM), NABARD adding that the share of agriculture is pegged at Rs 1.04 lakh crore which is about 46% of the total potential estimated.

Stating NABARD State Credit Seminar at Gandhinagar, Mishra said that the theme for the year 2021-22 state focus paper has been kept as “Collectivization of Agricultural Produce for Enriching Farmer’s Income” in lines with the Prime Minister’s apparition to double the income of farmers by the end of the year 2022.

As per NABARD’s projection for the next fiscal, Rs 63,464 crore would be given as crop loan and Rs 21,377 crore have been foreseen for farm credit other than crop loan. The potential linked credit plans (PLPs) recommended Rs 9,704 crore and Rs 5,964 crore for agriculture infrastructure and ancillary activities correspondingly. Rs 3,729 crore have been kept aside for working capital, especially for animal husbandry and fisheries for the state.

For MSMEs, NABARD has projected credit of around Rs 91,000 crore for the financial year 2021-22 in Gujarat. To enhance the rural economy in the state, the bank has allotted Rs 2,705 crore and Rs 15,498 crore for export and housing-related finances. For other sectors  including education, renewable energy, social infrastructure etc. another Rs 5,400 have been estimated.

The bank has also authorized the first-ever Rural Business Incubation Centre (RBIC) in Gujarat. This would be sixth in the country. The incubation centre to be set up in Dantiwada in North Gujarat at an estimated cost of Rs 10.31 crore. It would give common infrastructure and services such as technology development assistance, networking and mentoring, funding access, training & development, business support services such as development, marketing, finance and accounting, research, legal, regulatory etc., pre-incubation services, hand-holding, amongst others to start-ups

The RBIC assisted by NABARD will be a Special Purpose Vehicle (SPV) which will enable the eligible institutions to provide single window access for all agricultural and rural business activities within the Institution for consultancy, consortia and incubation, encourage associations to lead the projects in the initial stages, mobilize entrepreneurs, meet the specific objectives of mobilizing resources, obtaining finance, transferring risk and performing specific investment activities etc.

Talking at the seminar Gujarat Chief Minister Vijay Rupani said that the state government want to promote Farmers’ Producer Organisations (FPOs) in a big way. “We are envisaging at least 1,000 FPOs in the next two years,” said Rupani.

At present NABARD has promoted 203 FPOs in the state of which 149 are registered and 55 FPOs are in the procedure of registration. Of the total FPOs functioning in Gujarat, 76 have been registered as Companies and others are functioning as Cooperative Societies.

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