From Our Special Correspondent
Daijiworld Media Network

Bengaluru, May 25: Agriculture is projected to get Rs 86,690 crore or roughly 54.17 % of Karnataka’s mega annual credit plan of Rs 1,60,020 crore for the year 2017-18.

The Annual Credit Plan prepared by Syndicate Bank Ltd, the lead bank for Karnataka, at the State Level Bankers’ Committee (SLBC), was released by Karnataka Chief Minister Siddaramaiah on Thursday.

The State’s Annual Credit Plan projects total priority sector credit disbursement of Rs. 1,60,020 crore, in which the share of agriculture credit amounts to Rs. 86,690 crore, constituting 54.17 % of the total priority sector.

Of the total agriculture credit projection of Rs. 86,690 crore, the share of crop production credit stands at Rs. 58,563 crore, which is 67.55 % of the total size of the annual credit plan.

The share of Micro, Small and Medium Enterprises (MSME) sector credit is Rs. 34,703 crore or 21.68%.

Housing sector gets Rs. 16,977 crore or 10.6 % while education sector gets Rs. 3,857 crore or 2.4%.

The overall growth rate in total priority credit comes to 16.5 % over the previous year’s achievement of Rs. 1,37,393 crore.

Addressing the SLBC meet after releasing the Plan, the Chief Minister said, “I am glad to learn that banks have achieved the targets under the total farm sector and MSME sector under the Annual Credit Plan for the last three years. However, banks have achieved only 80 % of the target in respect of their crop production credit disbursement during 2016-17.”

When we expect growth year after year with preparation of such annual credit plans, Siddaramaiah said the disbursement under the Housing loan portfolio, which is a national priority, has come down from Rs.9,061 crore in 2015-16 to Rs. 5,916 crore in 2016-17. 

Similarly, the disbursement under the Education loan portfolio has come down from Rs. 2,248 crore in 2015-16 to Rs. 1,639 crore in 2016-17,” the Chief Minister pointed out.

Talking about drought conditions in the State for the third consecutive year, Siddaramaiah said a major part of our state is reeling under severe drought. 

“Our Government has declared 139 taluks as drought affected during Khariff 2016 and 160 taluks during Rabi 2016-17,’’ he said explaining the difficulties faced by the farming community and the government.

He said concerted efforts were necessary to address the needs of farmers.

“The list of drought affected taluks has been communicated to all the banks. There is an immediate need to assist the farmers in the drought affected areas. Banks are requested to extend relief measures and also grant fresh loans in line with extant guidelines,’’ he added.