ITANAGAR, Dec 12 � Arunachal Pradesh Chief Minister Nabam Tuki has urged Union Finance Ministry to ask banking institutions to initiate steps to expand and strengthen the self-help group (SHG) bank linked system in Arunachal Pradesh.
Speaking at a meeting convened by Union Finance Minister Pranab Mukherjee for Chief Ministers of East zone States at Kolkata on Saturday, Tuki underlined the importance of micro credit as more than 80 per cent of farming communities are marginal farmers with little access to credit in the State, a press release said.
Tuki urged that SHGs engaged in the farming and non-farming micro level enterprises should be increased to reach one lakh by 2015 and two lakh by 2020. To achieve this target, he said credit needs to be provided on easy terms and conditions and low interest rates to the needy people.
While informing that performance of banks in housing sector was Rs 33.2 crore in 2009-10 and Rs 53.8 crore in 2010-11 which is about 62 per cent growth over the previous year, Tuki, however, expressed concern over the position of private sector banks, which he said is dismal at only 6.67 per cent growth.
Welcoming the Centre�s package for doubling the flow of credit to agriculture and allied activities announced in June, 2004, the Chief Minister said in this regard the agriculture credit flow in Arunachal has improved from Rs 2966 lakh in 2008-09 to Rs 7541 lakh in 2010-11.
Tuki, meanwhile, appealed flexibility in banking norms for facilitating education loans to students of the State. He also appealed for flexibility in extending loans to weaker sections and minority communities of the State.
Another concern Tuki highlighted was the State�s Credit-Deposit (CD) ratio, which has declined from 26. 27 per cent (March, 2007) to 22.08 per cent in March, 2011, well below the all India CD ratio of 75.5 per cent.
He called for all out efforts by banks to improve the CD ratio by resorting to fresh lending in agriculture and other priority sectors.
Citing negligible presence of industries in the State, he informed that under the New Industrial Policy provision has been made to provide concessions to attract entrepreneurs.
In this regard, he said the State will require liberal funding including credit from financial institutions at a concessional rate of interest and for this, Centre may issue suitable guideline to the banks.
Tuki also welcomed the Business Correspondent and other models with appropriate technology backup to be implemented by banks.
On the likelihood of power developers to approach banks for loans in implementing hydro projects in the State, Tuki said the government is processing all these projects in a single window clearance. � PTI