The National Bank for Agriculture and Rural Development has projected a 16-per cent growth in priority sector lending in Tamil Nadu for 2015-16.
According to the Potential Linked Credit Plan announced for the year, the credit potential for the year is estimated at ₹1.44 lakh crore, with 41 per cent going to crop loan (₹59,801 crore); 22 per cent to agriculture term loan (₹32,528 crore); 18 per cent to MSME (₹25,647 crore); and 18 per cent to other priority sectors (₹26,458 crore).
Addressing a meeting of refinance institution with Tamil Nadu Government officials on Tuesday, K Venkateswara Rao, Chief General Manager, NABARD, said the credit plan is aimed at accelerating the pace of capital formation in agriculture to enable a 4-per cent growth as targeted under the 12{+t}{+h} Plan.
T Udhayachandran, Finance Secretary (Expenditure), Tamil Nadu Government, said formal credit institutions should support credit flow to enable farm mechanisation, address the disparity in regional credit linkage of self help groups and enhance credit flow to micro enterprises.
The MSME sector provides livelihood to over 96 lakh persons and has to be adequately supported with timely credit.
Farmers have to be encouraged to use organised warehouse infrastructure by expediting provision of warehouse receipts and pledge loan facilities. Warehouse infrastructure is being utilised by buyers rather than producers, he said.