NABARD launches Rs 1,918 cr area development plan for Punjab

Punjab Economy

Published on: 15-Feb-18
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The National Bank for Agriculture and Rural Development (NABARD) at the State Level Bankers' Committee (SLBC) meeting announced area development plans worth Rs 1,918 crore for Punjab to supplement farmers' income.

Background :

The investment credit growth in Punjab went down from 37 per cent in 2013-14 to 18 per cent in 2016-17 while the overall investment credit growth in India has gone up from 25 to 35 per cent.
Banks in our state are not giving adequate attentions towards agriculture term lending. Around 32 per cent of the total agriculture lending should be for investment credit.
Debt waiver schemes of the state government affects the banking system, particularly recoveries leading to shortage of investment by banks in Punjab.

Analysis :

The plan envisages promoting activities like dairy, vegetable cultivation, mushroom growing and bee keeping providing income to farmers on sustainable basis.
It will address concerns over the plummeting investment credit in Punjab which has declined due to lack of information among farmers and lack of coordination among government departments and banks.
The Plan will encourage diversification of crops and help in achieve Government's policy to double farmers income by 2022.

NABARD :

NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November 1982.
Set up with an initial capital of Rs.100 crore, its’ paid up capital stood at Rs. 5,000 crore as on 31 March 2016. Consequent to the revision in the composition of share capital between Government of India and RBI, NABARD today is fully owned by Government of India.
It promote sustainable and equitable agriculture and rural development through participative financial and non-financial interventions, innovations, technology and institutional development for securing prosperity.

Other Initiatives of NABARD in Punjab :

The National Bank for Agriculture and Rural Development (NABARD) disbursed Rs 10,000 crore for the rural development sector in Punjab, an increase of 25% from last fiscal (2017-18).
In 2017, the bank provided assistance of Rs 444.82 crore to under rural infrastructure development fund (RIDF), sanctioned term loan of Rs 27.13 crore to Punjab Agro Industries Corporation Limited (PAICL) for the development of Mega Food Park at Ludhiana and Rs 317.4 crore to state transmission utility.
The assistance of Rs 213.09 crore has been sanctioned under the RIDF to the state government for constructing 71 roads, Rs 206.06 crore to the state warehousing corporation for creation of storage capacity and Rs 254.40 crore to four milk producers unions in 4 districts (Jalandhar, Ludhiana, Patiala and Rupnagar).
NABARD will cover 3,000 villages to create awareness against stubble burning and will spend Rs 3 crore on the project.