INDIA BUSINESS WORLD - FEBRUARY 2007
The Month that was ...

J&K TO GET RS 560 CR FOR RURAL INFRASTRUCTURE

THE National Bank for Agriculture & Rural Development (Nabard) has sanctioned Rs 460 crore for J&K under Rural Infrastructure Development Fund (RIDF) for the current fiscal. This is besides the bank refinance of Rs 25 crore under ICD and a crop loan of Rs 3.70 crore.

General manager S Mahapatra told that most of the amount goes to transport sector where increasing the road connectivity and rebuilding the bridges is the priority. "So far we have disbursed Rs 120 crore under RIDF alone," he said.

By end of August last, Nabard sources said J&K's total liability towards it has crossed Rs 590 crore. Most of the liability is on account of rural infrastructure specially the roads that roughly account for 70% of the total loan devolutions from it. Against targeted outgo of Rs. 380 crore during 2005-06, the cap has increased by Rs 97 crore to Rs 459 crore for the current fiscal. So far the bank has approved 119 roads and bridge projects besides 22 water supply schemes under RIDF.

Mr Mahapatra said the bank is keen to see the regional rural banks coming out of the problems and becoming the lead institutions in micro-credit disbursement. Two of J&K's three rural banks the Jammu Rural Bank and the Kamraz Rural Bank are merging shortly to create J&K Grameen Bank. Unlike JRB, the KRB is in loss but Mr Mahapatra says the KRB has managed to survive in a worst situation. "Of the Rs 3.75 crore sanctioned under crop loans, JRB has taken Rs 1 crore," he said. This is besides the investment credit of Rs 25 crore for the current fiscal.