CM reviews credit linkages to farmers, Mission Shakti and MSMEs

Bhubaneswar: Chief Minister Naveen Patnaik today appreciated the efforts of Banks and districts for making coordinated efforts to improve lending to priority sectors.

 Reviewing the performance over credit linkages with bankers, collectors and top officers of the state government today on virtual platform, the Chief Minister said that there has been a considerable progress in credit disbursement to priority sector during the last 2 months.

Since the last review meeting two months back, the Chief Minister said, that he had requested all to go the extra mile in these crisis times and ensure adequate and timely credit supply to help the most vulnerable sections of society and economy –farmers, women and MSMEs.

He further said that our Government is always concerned to safeguard and protect the interest of the vulnerable and disadvantaged groups. The farmers, Mission Shakti groups and MSMEs are our lakhs of entrepreneurs who are in need of credit to run and expand their business. We need to support them in true letter and spirit, he added.

Highlighting the importance of Agriculture, MSME and Mission Shakti, he said that for taking forward the momentum created in the last few months, the budgetary provisions for these sectors have been substantially increased for the Financial Year 2021-22.

We are also providing Interest Subvention under various schemes to reduce the interest burden on the people and to enhance of credit linkage, he added.

He noted that the Banks and Districts have done quite a commendable job in improving their performance in credit flow to Agriculture, MSMEs & SHGs sector. He congratulated all the Bankers for achieving the financial target meant for SHG sector well ahead of time.

The Chief Minister said that from the last meeting in December about Rs 1600 Crores more has gone to Mission Shakti groups which is about Rs 500 Crores more than the annual target.

He complimented all the Banks and the district administration for this achievement and hoped that this good work would be scaled up.

It was revealed in the meeting that the annual credit target for SHGs was Rs 3240 Crore. But by January, the SHGs have already received credits over Rs 3745 Crore.

The average loan size in SHG sector is Rs 1.49 lakh, which needs to be improved to at least Rs 2 lakh.

The Chief Minister, therefore, cautioned over the need to focus on increasing the average size of loan for the SHGs.

Speaking that credit support to Mission Shakti groups is one of the top priorities of his government, the Chief Minister congratulated the districts of Ganjam, Balasore, Nuapada, Kandhamal and Angul on good performance.

He also thanked Odisha Gramya Bank, Odisha State co-operative Bank, SBI, UCO Bank, and Canara Bank for supporting the Mission Shakti groups. He urged other banks like Axis Bank, HDFC Bank and IDBI Bank to improve their performance.

Focusing on farmers, the Chief Minister said that they are the backbone of our State. We should provide them timely credit. He said that overall, we have been able to help the farmers with credit so far in most districts.

It was informed in the meeting that Last year Crop Loan was Rs 20 thousand Crore. This year, it has been Rs 20,606 Crore by now.

The Chief Minister specially commended Sundargarh, Sonepur and Bolangir and Kendrapara for their outstanding achievement. He also expected Malkangiri, Gajapati, Kalahandi and Dhenkanal to improve.

He also congratulated Odisha State Cooperative Bank, Punjab National Bank, Odisha Gramya Bankand Bandhan Bank for their good performance. He expected the HDFC Bank, Axis Bank, Central Bank of India and Bank of Baroda to improve their performance.

Coming to MSMEs, the CM said that they are the backbone of our economy and have significant role in employment.

He expressed happiness that overall credit flow to MSMEs during the last two months’ time has been satisfactory.

The MSME sector has received credits over Rs 26 thousand crore which is expected to touch the target of Rs 20,457 Crore by March.

The Chief Minister appreciated Jajpur, Nayagarh, Bhadrak, Kendrapara and Rayagada districts for exceeding their annual targets.  He advised Districts like Gajapati, Deogarh, Nuapada and Dhenkanalshould to improve their performance.

 He said that Punjab National Bank, Central Bank of India have also exceeded the annual target.  He also appreciated that the State Bank of India has given the maximum credit support to MSMEs to the tune of Rs 7,541 crore so far.

He advised the HDFC, Bank of Maharastra, Bank of Baroda have to come forward for more credit to MSMEs.

He also thanked Khurda, Sundargarh and Ganjam Districts and Orissa State Co-operative Bank, State Bank of India and Union Bank of India for their overall performance in terms of volume of total credit flow to priority sector.

Expecting further improvement in credit provisions, the Chief Minister said that we still have one month to go in this financial year. He asked all the districts and banks will strive hard to achieve their annual credit targets.

He said, ‘as promised last time, I will inform the Union Finance Minister about the good performance of some of the banks. We will also award the well performing banks for the cause of Farmers, Small Entrepreneurs and SHGs at the end of the financial year.’

 He advised the District Administration and Bankers to work closely in coherence with the aspirations of the Government for the best interest of the people of our State.

 In his opening remarks, Chief Secretary Suresh Chandra Mohapatra said that the second meeting being called in just two months means the State government is attaching highest priority to credit linkages to these sectors.

Speaking on the improved performance of banks and districts, he hoped that all the target will be achieved in next one month.

The meeting was moderated by Secretary to Chief Minister V. K. Pandian.

During the meeting the review of Credit linkages to farmers was coordinated by Principal Secretary Sourabh Garg, that Fisheries & ARD was coordinated by Commissioner-cum-Secretary R. Raghu Prasad.

Review of MSME sector was coordinated by Principal secretary Satyabrata Sahu. Review of Mission Shakti was coordinated by Commisioner-cum-Director Sujata Kartikeyan.