Make AP a powerhouse, says CM

Banks told to hike lending to agriculture, micro, small enterprises

Hyderabad: Giving a call for financial innovations to generate wealth, AP Chief Minister N Chandrababu Naidu on Saturday asked bankers to take Andhra Pradesh under the pilot project for new income-generating activities. According to a press release from the Chief Ministers Office, Naidu asked bankers to increase lending to agriculture and allied sectors, Micro, Small and Medium Enterprises (MSMEs), entrepreneurs and women of Self-Help groups (SHG). He also sought their support for State Development Loans (SDLs).

Given that the food habits of people were changing, there was increasing demand for poultry, fish (aquaculture) and horticulture. “Allied sectors of agriculture generate more jobs and hence, you can look at ways to lend to farmers relying on these activities,” he said. The Chief Minister explained that the state had been able to generate nearly Rs 3,000 crore through transparent sale of seized red sandalwood in two phases (Phase 1- Nearly Rs 1,000 crore and phase 2 – about Rs 2,000 crore).

While Barytes (Barite reserves) had fetched the government about Rs 5,000 crore, e-PoS (point of sale) in public distribution system had saved Rs 45 crore to the state exchequer in a month, he said. As a revolutionary step, the government’s decision to hand over sand mining to women of SHGs had fetched about Rs 550 crore. This had not only led to streamlining of sand mining and sale, it also made SHG women financial independent and became a growth driver for AP, the Chief Minister said.

By August 2015, the state government would ensure distribution of RuPay cards to every family in the state. The RuPay card would have Unique ID number inscribed on it. During the meeting, Society for Elimination of Rural Poverty (SERP) CEO Solomon Arokhya Raj sought banks’ support in lending money to non-farm enterprises, provide RuPay cards to all SHG members and help in providing skills to women in SHGs to promote productivity.

He added that banks could provide capital grant of Rs 1 lakh to each SHG. The support could be provided for household activities where women were engaged in manufacturing of handicrafts at home or for cluster activities such as pickle-making, papad-making, etc or small enterprises. On field, banking correspondents can motivate women of SHGs to improve productivity and educate them on savings,” he added.

“ The new capital city of Amaravati has numerous opportunities. You have to set up your bank branches there with best technology and also explore opportunities such as BPOs in finance. I aim to make the state a financial powerhouse. I need your cooperation,” the Chief Minister added.

Bankers responded positively to the Chief Minister’s appeal and reiterated their interest in agriculture and allied sectors and wealth creation through SHGs, giving a thrust to the financial inclusion plan.