NABARD extends financial assistance of Rs 13,425 cr in Kerala

NABARD disbursed all time high financial assistance of Rs 13,425 crore in Kerala by way of refinance and direct finance during the FY 2020-21, registering an impressive growth rate of 26 per cent over the previous FY.

An amount of Rs 12,847 crore towards refinance assistance was disbursed to various banks such as Kerala State Cooperative Bank (KSCB), Kerala Gramin Bank (KGB), Kerala State Cooperative Agricultural and Rural Development Bank (KSCARDB) and a few Commercial Banks towards priority sector lending activities, a press release said here on Wednesday.

This includes Short Term Loans of Rs 9,252 crore for financing Seasonal Agricultural operations (Crop loans) and working capital limits under MSME sector. The rest of the refinance amounting Rs 3,595 crore was disbursed as Long Term Loans for financing Investment credit sector activities under Agriculture and allied activities and MSME sector.

During the year 2020-21, NABARD sanctioned projects worth Rs 538 crore to Government of Kerala under its Rural Infrastructure Development Fund (RIDF) which included 6 Public Health Institutions in 4 districts viz; Kollam, Ernakulam, Thrissur and Kannur districts with a loan of Rs 74.15 crore and fishing harbours amounting to Rs 54.57 crore.

Further, establishment of milk powder unit in Malappuram district amounting loan of Rs. 32.72 crore, Nile Tilapia Hatchery in Kollam district involving loan of Rs 11.60 crore and two drinking water projects involving loan of Rs 60.81 crore in Kollam and Idukki districts were other major projects sanctioned during 2020-21.

Besides the above, NABARD also provided Rs 30 crore as grant assistance towards Banks, NGOs and State Kudumbashree Mission for supporting developmental activities and initiatives under its various Developmental Funds during the FY 2020-21.

The major grant assisted activities include Rs 12 cr under Watershed Development Fund (WDF) in Palakkad, Kasargode and Wayanad districts and Rs 4 crore under Financial Inclusion Fund (FIF) for purchase of mobile Vans by KSCB and KGB, purchase of micro ATMs and conduct of Financial Literacy programmes by eligible Financial institutions.

Further, Rs 3 crore assistance each was extended to tribal development activities under Tribal Development Fund (TDF) and supporting micro credit development activities of Self Help Groups (SHGs) and Joint Liability Groups (JLGs) under Financial Inclusion Fund (FIF) respectively.

The other important activities supported include conduct of two handloom exhibitions, promotion of Farmer Producer Organizations (FPOs) and training of Cooperative Bank Personnel.