Home > News > Kerala News

NABARD may withhold sanctioning RIDF projects

Posted on Feb 09, 11:02AM | UNI

Thiruvananthapuram, Feb 8 : NABARD has sanctioned Rs 1262 crore in respect of 1182 ongoing projects in Kerala with the total financial outlay of Rs 2767 crore.

During the current year, NABARD has already sanctioned Rs 738.36 crore and another Rs 266.71 crore is in the pipeline which is much more than the allocation to the state at Rs 600 crores, an official press release said today.

NABARD observed that though it has been very accommodative in sanctioning of RIDF loans in Kerala, but the implementation by various agencies of the state has not been very encouraging. As on date, only Rs 121 crore has been drawn from NABARD for the current year, which is one of the lowest in any state as compared to the sanctions.

The CGM further observed that if Government does not expedite the implementation and draw at least Rs 525 crore during the current year, NABARD may be constrained to keep in abeyance further sanctioning of projects in the state.

NABARD has written in this regard to all the Secretaries of the Implementing Departments, MLAs, MPs and Ministers to review and expedite implementation of the Project.

Despite all the efforts, NABARD observed that the outcome was not to the desired extent.

In the case of Short Term loan to Cooperatives, NABARD could disburse its concessional refinance at 4.5 per cent, only Rs 395 crore against the allocation of Rs 1085 crore.

The NABARD expressed surprise that there is demand of more and more sanctions under various facilities, but when it comes to implementation and with drawals the utilisation is not up to the expected level. On the other hand, there are press reports about NABARD being not friendly to farmers.

The NABARD, already decided to reduce the interest rate for KSCARDB loans to 9.2 per cent and RIDF loans to the Government to 7.25 per cent.