Odisha Drought : CM Urges Jaitley To Sanction Rs.1,300 Cr Nabard Refinance

11 December, Bhubaneswar

Odisha Chief Minister Naveen Patnaik Friday requested Union Finance Minister Arun Jaitley to advice NABARD to sanction Rs 1,300 crore to Odisha state Co-Operative bank at the earliest to help the farmers hit by the drought situation.

In a letter to Jaitley, copies of which were released to the press here, the Chief Minister said drought condition has caused extensive damages to the khariff crop in 215 blocks out of 314 blocks in the state.

The state government, Patnaik said, had decided to provide fresh loan to farmers in drought affected areas without recovering the loan advanced during khariff 2015. The cooperative banks provide 70 per cent of total crop loan to farmers and depend upon NABARD refinance for the purpose, he added.

The Chief Minister said against the programme of Rs 10,000 crore for disbursement of crop loan by cooperative banks NABARD has sanctioned a refinance limit of Rs 3,200 crore only. Though the policy of NABARD stipulated that 45 of the crop loan to be provided by cooperative banks should come as refinance from them to the Odisha state cooperative bank, the limit sanctioned falls short of Rs 1,300 crore against eligibility norm stipulated by NABARD.

Patnaik said the state chief secretary had written to the chairman NABARD in this regard on November 7 but got no response so far.

He said, NABARD refinance is required to enable the cooperative banks led by Odisha state cooperative bank to cope with the credit requirement of the drought affected farming community and urged the Union Finance Minister to intervene into the matter.BM

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