NABARD to Fund Rural Projects in Maharashtra

Mumbai, Jan 31 (IANS) The National Bank for Agriculture and Rural Development (NABARD) Saturday said it is willing to fund rural infrastructure projects in Maharashtra as the quantum of priority sector lending in the state will stand at Rs. 1,80,032 crore for the coming fiscal year.

"Maharashtra may prepare State Infrastructure Development Plan to which NABARD can fund. The state should focus on the infrastructure development in rural areas by prioritising the districts and state specific infrastructure needs", NABARD said in a statement.

According to the apex development bank, the credit flow potential in the state is almost double the previous year that stood at Rs 91,234 crore for the year 2014-15.

"The lending potential for agriculture sector will be Rs 65,512.18 crore whereas the credit potential for non-farm sector and other priority sector will be Rs 62,141.96 crore and Rs 52,378.15 crore respectively", a study paper on the state by NABARD said.

The study also estimated the potential credit for the agriculture sector at Rs 46,634.10 crore. Among other non-farm sectors, there is a good lending potential for sectors like water resources at Rs. 4059.44 crore, farm mechanisation at Rs. 2,640.06 crore, plantation and horticulture at Rs. 2,794.96 crore and storage godowns at Rs. 1,706.52 crore.

NABARD said since 18 percent of the net sown area is irrigated in Maharashtra, it needs to be addressed on an urgent basis. Also, development of watersheds is another priority in the state.