Encourage rural entrepreneurs: AP CM to Bankers

Vijayawada, Dec 16 (INN): Given that Andhra Pradesh is moving ahead with an ambitious target of achieving 15 % growth rate by 2016-17, Andhra Pradesh Chief Minister N. Chandrababu Naidu asked the state bankers to step out of their traditional policies to issue loans on land and encourage rural entrepreneurs and other livelihoods.

Elaborating on his vision to make Andhra Pradesh the best state by 2029, the Chief Minister asked bankers to increase lending to agriculture & allied activities, Micro Small and Medium Enterprises (MSMEs), entrepreneurs and women of Self-help groups (SHG).

Elaborating on the second quarter results of the economy at the 192nd meeting of the State Level Bankers Committee of Andhra Pradesh, he said that the government is moving ahead to achieve inclusive double-digit growth. In order to achieve this, he said, banks must not disassociate after issuing loans. He extended full co-operation to the banks and sought the same.

He brought forward various roadblocks that were pointed out by the officials and district collectors during the Collectors' Conference on 14th and 15th December. In the meeting, he pointed out that the allied sectors of the primary sector have fared well compared to agriculture that underperformed due to deficit rainfall and drought conditions. For the strengthening of the agriculture, the Chief Minister said, the government is undertaking dry spell mitigation, recharging of groundwater levels and drought-proofing on war footing.

Stating that most of the farmer suicides in the state are committed by the tenant farmers, the Chief Minister asked the bankers to explore effective solutions to redress this problem. He directed the bankers to come up with innovative practices by next month. He added that the primary sector holds potential to provide employability and achieve sustainable growth.

Stating that banks have to play a pro-active role, the Chief Minister said that state government is giving top priority to agriculture and allied activities and asked the bankers to continue supporting farmers.

Suggesting banks to come up with innovative ways to generate revenue and boost economic activity to those groups they are lending to, the Chief Minister said that banks could reach district-level/mandal-level and review how these groups are performing. 'Identify growth-driving sectors based on the demand, and disburse credit based on that,' he opined.

'Monitor how these groups are generating economic activity and analyse the impact. Depending on the credit given to these assets/groups, we can monitor whether they are performing well or are likely defaulters,' he added.

Meanwhile, he stressed on the effective implementation of Pradhan-Mantri Jan Dhan Yojana, Mudra and other Government of India initiatives. 'Even the last person in the society must be able to reap benefits of the union government schemes,' he added.

In order to give a thrust to economic activity in Andhra Pradesh, the Chief Minister suggested a robust cohesion between the government and bankers. Bankers responded positively to the Chief Minister's roadmap for growth and reiterated their interest in agriculture and allied activities and wealth creation through SHGs, giving a thrust to the financial inclusion plan.

Ministers Prattipati Pulla Rao, Kollu Ravindra, Kamineni Srinivas, Chief Secretary I.Y.R. Krishna Rao, Special Chief Secretary (Planning) S.P. Tucker, State Planning Board vice-chairman Ch. Kutumba Rao, Principal Secretary (Finance) Dr. P.V. Ramesh, SLBC Convener D. Durga Prasad, Principal Secretaries, bankers from Andhra Bank, State Bank of Hyderabad, State Bank of India, Syndicate Bank, Indian Overseas Bank, Bank of India, Indian Bank, Axis Bank, ICICI Bank, HDFC Bank, Canara Bank, Corporation Bank, IDBI Bank and others were present at the meeting.