CM YS Jagan Mohan Reddy seeks support of bankers to strengthen rural economy

Amaravati: Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy urged the bankers to extend their support in implementing government welfare schemes and help in strengthening the rural economy.

Speaking at the 212th State Level Bankers Committee (SLBC) meeting held here on Friday, the Chief Minister said that prioritising the farmers and strengthening the villages were the top priority of the government, as over 62 per cent in the state's population relies on the agriculture sector.

The Chief Minister said that the government has been successfully implementing PM Kisan-YSR Rythu Bharosa schemes by providing Rs 13,500 to farmers in three spells (Rs 7,500 in kharif, Rs 4,000 in rabi and Rs 2,000 during harvest time in January).

He stated that loan target for 2020–21 kharif season was at Rs 75,237 crore, and so far Rs 62,650 crore was spent, which is 83.27 per cent of the target. He asked the bankers to check whether all the farmers who were enrolled on the e-cropping platform were receiving loans.

He said that it is mandatory for the farmers to have an e-cropping certificate to avail of crop insurance and zero-interest loans in order to avoid corruption. Bankers were told to pay special attention in granting loans to farmers and check for e-cropping certificates while issuing crop loans.

The Chief Minister said that the government introduced a market intervention fund and procured crops by paying a Minimum Support Price with Rs 3200 crore. He said that this year the market intervention fund is going to be about Rs 3500 crore.

Jagan Mohan Reddy also discussed Naadu-Nedu in schools and hospitals, village clinics and the establishment of new medical colleges in the state. He said that as many as 15,715 schools were being revamped under the Naadu-Nedu initiative for which Rs 4,000 crore would be spent in phase-1, Rs 4,500 crore in phase-2 and Rs 3,500 crore in phase-3.

In regard to the health sector, the government will be setting up village clinics across the state taking basic medical services into interior villages. Similarly, the government will be establishing 16 new teaching hospitals across the State, ensuring each parliament constituency has one teaching hospital.

In the next three years, the state government targeted to spend Rs 13,000 crore to strengthen the medical infrastructure and health services in the State, he said.

He said government will be launching Jagananna Thodu scheme in November to benefit small traders and support them by providing loans.

The officials said that the loans target has increased by 9.78 per cent for 2020-21 at Rs 2,51,600 crore when compared to previous year. Of the total loan targets, the government aims to lend Rs 1,28,660 crore to the agriculture sector, that is an increase of 11.9 per cent over the previous year and to lend Rs 39,600 crore to micro, small and medium enterprises (MSMEs) which is 10 per cent more than last year.

For the priority sector, the state government intends to spend Rs 1,87,550 crore, which is 10.88 per cent higher than last year, and Rs 64,050 crore to the non-priority sector, which is an increase of 6.75 per cent over last year.

The officials said that the government has decided to provide Rs 2,29,200 crore of loans during 2019-20 of which Rs 2,27,882 crore has been issued by achieving 99.42 per cent of the total target.

Meanwhile, speaking at the conference, G Rajkiran Rai, SLBC president and MD of Union Bank of India, hailed the state government's initiatives, ensuring financial progress among small scale traders and craftsmen. He said the banks were ready to come forward to offer help to agriculture and allied sectors, supporting the farmer community.

Ministers Mekapati Gautham Reddy, K Kannababu, chief secretary Nilam Sawhney, SLBC convenor V. Brahmananda Reddy and officials of various banks were present.