NABARD estimates Rs 90,395cr credit potential for Odisha in FY21

National Bank for Agriculture and Rural Development projected an overall credit potential for Odisha under priority sector at Rs 90,395 crore for 2020-21.

The credit potential of the state was estimated in the State Focus Paper for Odisha, released in the credit seminar for 2020-21.

"The aggregation of the district-wise Potential Linked Credit Plans (PLPs) for 2020-21 projects a credit flow of Rs 90,395.69 crore for Odisha, with an increase of around 20 per cent over credit projection of 2019-20," a NABARD statement said.

Out of the total credit potential for priority sector, an amount of Rs 43,282.11 crore has been assessed under agriculture, it said, adding that emphasis was given to recalibrate the potential assessment keeping in view the recent trends of ground level credit.

Of which, Rs 40,227.79 crore is estimated under farm credit, which comprises both crop and term loans for agriculture and allied activities.

Credit potentials under agriculture infrastructure and ancilliary activities have been estimated at Rs 1,603.94 crore and Rs 1,450.38 crore, respectively, the statement said.

The focus paper said the credit potential under MSME sector has been assessed at Rs 30,457.99 crore, constituting 33.69 per cent of the projected lending under the priority sector.

Other sectors consisting of export credit, education, housing, renewable energy and social infrastructure have 18.43 per cent share in the total credit potential under priority sector.

Acknowledging that the state government has undertaken an array of policy initiatives for development of agriculture and allied sectors and MSME, the paper indicated critical infrastructure gaps and also made suggestions to overcome the constraints.

Inaugurating the seminar, state finance minister Niranjan Pujari emphasised on the need for increasing the agri-term loan finance in activities of other allied sector such as animal husbandry, poultry and fisheries, leading to asset formation and diversification of the income basket of farmers.

He also advised all the banks to increase their banking outreach in unbanked areas of the state in order to help the government in implementation of various developmental programmes and also increase the scope of digital banking.