Nabard pegs credit plan at Rs 1.85 lakh crore in Telangana

The potential estimate for agriculture is Rs 1,12,763 crore comprising short-term crop loan component of Rs 73,437 crore and agriculture and allied term credit of Rs 39,326 crore.

Hyderabad: The National Bank for Agriculture and Rural Development (Nabard) has pegged a credit potential of Rs 1,85,327 crore for priority sector lending in Telangana for 2023-24.

Of this, the potential estimate for agriculture is Rs 1,12,763 crore comprising short-term crop loan component of Rs 73,437 crore and agriculture and allied term credit of Rs 39,326 crore. The assessment of credit potential for MSME and other priority sectors is Rs 54,672 crore and Rs 17,892 crore, respectively.

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Finance Minister T Harish Rao released the State Focus Paper of Telangana giving an assessment of the potential for lending by banks to various activities under the priority sector for 2023-24 while participating in the State Credit Seminar organised by Nabard regional office here on Thursday.

Harish Rao said the credit potential estimates were realistic and will lay a strong foundation for the transformation of agriculture in Telangana which in turn would help in increasing farmers’ income. He said the growth of Telangana in agriculture and allied sectors was 10%, which is almost thrice the national average. He stated that the State government’s farmer-friendly reforms, including Rythu Bandhu and Rythu Bima, have encouraged farmers to take up agriculture as a serious and remunerative occupation.

The Minister thanked Nabard for playing a crucial role as a farmer-friendly bank and called upon bankers to tap the credit potential and enabling environment in the State for the growth of the sector and be a partner in the development of the State. He also wanted them to support startups, which have a direct role in the agriculture and allied sectors by providing credit for oil palm production, farm mechanisation, food processing, and construction of rural godowns among others.