NABARD approves Rs 300-cr loan for J&K
Jammu, April 7: The State Government would construct 4000 additional classrooms for accommodation deficient about 1000 newly up-graded high and higher secondary schools throughout the State. The National Bank for Agriculture and Rural Development (NABARD) will provide a loan of Rs. 100 crore for undertaking this construction activity to be completed in four months. Another Rs. 200 crore would be made available by NABARD for construction of buildings for 100 primary health centres and 200 allopathic and ayurvedic dispensary buildings this year across the State.
The urgency of taking up these social sector related development activities was highlighted at a high level meeting the Chief Minister had here today with Union Minister of State for Finance, Pawan Kumar Bansal and Chairman, NABARD, U. C. Sarangi.
Currently, there are projects worth Rs. 524 crore pending with NABARD for loan while another 678 projects costing Rs. 1062 crore would be forwarded to it soon. It was decided that the State Government would send education and health sectors related projects to NABARD by April 20, besides prioritizing other projects pending with the country’s premier financial institution for clearance in its Board meeting scheduled for April 25.
On the insistence of the Chief Minister, the NABARD agreed to enhance normative loan allocation to the State for current fiscal from Rs. 606 crores to Rs. 900 crores.
Mr Azad asked Education and Health officials to prepare and send projects to NABARD before decided timeline so that these are cleared by the Bank in Board meeting later this month. He said there was urgent need to prioritise building of infrastructure in important social sectors to extend and upgrade facilities in all parts of the State as the basic services were still lacking in many areas of the State.
The Chief Minister said that keeping the limited working season in the State in view, there was need for early sanction of projects by the financial institutions to ensure time bound completion. He said the election process in the State scheduled to start later this year would also slow down execution of development projects. He said the decision to advance the budget session by two months was also governed by the need to make funds available in time given the limited working season.
He thanked Mr Bansal and Mr Sarangi for taking a sympathetic view towards the State. He said the Central Government under Prime Minister Dr Manmohan Singh had been very considerate in accommodating development requirements of the State and providing liberal assistance.
Mr Bansal assured the Chief Minister that NABARD would clear the proposals already submitted by the State Government by this month. He said other proposals to be received from the State Government would be cleared in June this year. He said 30% of mobilization amount was given to the State for speedy execution of schemes. He said that special attention was being given to J&K and other hill States and north-eastern States in providing finances for infrastructure development. He asked the State officials to prioritize projects for funding in various sectors.
Meanwhile, the State Government today signed a Memorandum of Understanding (MoU) with NABARD for a package of Rs 220 crore for recapitalization and revitalization of cooperative credit institutions in the State.
The MoU was signed by Chairman, NABARD, U. C. Sarangi and Registrar Cooperatives, Dr G. N. Qasba in presence of Chief Minister Ghulam Nabi Azad and Union Minster of State for Finance, Pawan Kumar Bansal here.
The package worked out in pursuance to Prof. A. Vaidayanathan Committee report would help the State in putting cooperative credit institutions in the sound fiscal health and enable these to compete with commercial banks and provide farm credit to the farmers.
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