Parkash Singh Badal asks NABARD to fund state schemes

CHANDIGARH: Punjab Chief Minister Parkash Singh Badal today asked NABARD to provide finance to allied sectors such as dairy and bee-keeping on the interest at par with agriculture to give further impetus to the much-needed agriculture diversification programme in the state.

He demanded to immediately slash the rate of interest on the NABARD's refinance from 4.5 to 2.5 per cent to boost the rural economy.

Delivering his address on the 32nd foundation day of NABARD here, Badal said that the NABARD had been earlier providing refinance at 2.5 per cent which had been now increased to 4.5 per cent and impressed upon the NABARD to immediately reduce it to 2.5 per cent.

"By reduction farmers could be provided loans at cheaper rate, which would also make the Primary Agriculture Cooperative Societies (PACS) financially viable and enable the state government in converting PACS into Multi-purpose Cooperative societies by adding farmer friendly services," he said.

He pleaded for providing finance to allied sectors like dairy, piggery, bee-keeping, goatery on interest at par with agriculture in Punjab by the NABARD.

Badal also urged the NABARD to immediately do away with the condition of capping of Rs 30 lakh for house loan and Rs 1 lakh for repair/renovation/enhancement.

He asked the NABARD to work out a scheme to arrest the growing trend of heavy migration of population from rural to urban area, by giving the rural economy a big boost.

Appreciating NABARD for providing concessional funds under Rural Infrastructure Development Fund for upgrading rural infrastructure in the state, Badal revealed that an amount of Rs 495 crore has been earmarked for the current fiscal and demanded the amount to be at least doubled to Rs 1000 crore.