Dispur, June 14: “Financial institutions and banks must play a proactive role in rural credit flow,” said Assam Chief Minister Shri Tarun Gogoi at a meeting convened by Union Finance Minister with Chief Ministers of East Zone States at Patna today.

“Under staffing of the rural bank branches coupled with short tenure officer posting are also factors of low level rural credit flow,” he pointed out.

Shri Gogoi said most of the State’s small and marginal farmers could not avail loans as land holding certificates are being insisted upon. “Land user certificate from Agri field officer should suffice for verifying its genuineness,” he pointed out. In this context, the Chief Minister pointed out that the State Government has made provisions for Rs.60 crore in the 2010-11 budget to provide assistance of Rs 3,000 each to 2 lakh small and marginal farmers to help them buy agricultural tools and equipment.

The Chief Minister called for implementing the recommendations of RBI for revitalizing the Lead Bank Scheme immediately. “The role of Lead Bank Officers (LBO) is crucial for effective implementation of the Annual Credit Plan. At present they don’t seem to have much teeth. I would like to suggest that the district collectors and lead bank officers should be given more effective powers so that they can actually lead all other bank branches in a district to achieve the collective goal of successful implementation of the district credit plan,” he said.

Pointing out the fact that only 3 kharif crops and 5 rabi crops in Assam are presently covered under the National Agriculture Insurance Scheme, Shri Gogoi said, “The notified area of coverage may be brought down to the Gram Panchayat level because Blocks and Revenue Circles are too large for proper assessment of loss of yield. Moreover the claim disposal procedures under the scheme also need to be simplified.”

Shri Gogoi regretted that the credit flow to Small Scale Industries (SSIs) and Micro Enterprises has not been encouraging. “Banks and other financial institutions must step in in a big way. This is the sector which has highest potential to generate self employment, particularly for the educated unemployed youths,” he said. In this context, Shri Gogoi requested the Union Finance Minister to launch a special drive for threefold increase in credit disbursement in the State.

There are 31,232 registered Micro and Small Enterprises in the State. Credit flow to Small Scale Industries [SSIs] is low at around 9% of total advances. About Rs.242 crore was advanced to SSIs in 2009 (till December). Similarly, credit flow to Micro Enterprises stood at only Rs.279 crore as on December, 2009.

Shri Gogoi requested the banks to adopt a liberal attitude in funding rural housing “Housing Loans have been provided to about 80,000 families only as seen from SLBC reports. There is vast scope of lending in this sector. At present credit flow for rural housing in the State is very meager,” he said.

The Chief Minister also called for more lending to weaker sections and minority communities in Assam. “The untapped potential of this segment of our population must be realized through imaginative schemes and interventions,” he asserted.

Total lending to the weaker section in the State was Rs.885 crore during 2009-10. Total outstanding against this sector as on March, 2010 was Rs.3118 crore.

The Chief Minister called for expansion of banking network in the State. “Though the number of bank branches in Assam increased to 1517 with the addition of 89 new branches in 2009, 28 districts are grossly under-banked. The bank-population ratio is still high at 17,600 as compared to the national average of 12,500,” he pointed out.

Shri Gogoi said that though the High Level Committee set up by the Reserve Bank of India to prepare a Financial Sector Plan for the NE Region found that the banks would have to open about 90 new deposit accounts per month per branch in the NE to reach the national average of 59%, it still remains a far cry. “We are still lagging way behind the national average. I request the CMDs of all banks to fulfill their commitments in this regard,” he said. In the same breathe, Shri Gogoi rued that the decision for collateral-free lending up to Rs 50,000 in case of agriculture and up to Rs 5 lakh to SMEs has not become a reality at the branch level. “Banks may consider giving incentives to branch managers for disbursing such loans,” he said.

“The number of No-Frills Accounts with overdraft facilities also needs to be increased to instill banking habit and to promote financial-literacy among the people,” he also pointed out. Of the 12 districts taken up for 100% financial inclusion in the State, only two districts, Sonitpur and Barpeta, have so far been declared as such.

The Chief Minister also pointed out that the performance of two Regional Rural Banks (RRBs) in Assam was improving following amalgamation of four RRBs into one in 2006. “The equity base of the RRBs has been strengthened substantially and State Government has made its 15% contribution on time,” he said. He, however, called for core banking facilities in the RRBs. “Though there seems to be some progress, I request the sponsor banks viz., UBI and SBI to help ensure this by March 2011,” he added.

Shri Gogoi regretted that though the Self-Help Group (SHG) movement was picking up momentum in the State, only 1.56 lakh have been credit linked out of 2.20 lakh SHGs having deposited savings in banks. “Field verification has revealed that many SHGs do not get the actual credit benefit. Some banks are resorting to the unhealthy practice of retaining the government subsidies to the SHGs as fixed deposits with them before disbursing the bank loan. In other words, those banks are actually not lending their own money. They are only lending the government grants at a rate of interest which is higher than the FDR interest paid by them to the SHGs. This unhealthy practice needs to be stopped forthwith,” he said.

The Chief Minister called upon the Union Finance Minister to constitute a high-level committee for evolving a system for ensuring bank credit to our SHGs at lower, affordable and reasonable rates, with special focus on women groups. “Banks lend money to the well-off including big and affluent corporate houses at around 14% interest, while the poor SHGs formed by women and vulnerable groups have to often pay interest as high as 30% or more through the system of ‘on lending’. This is indeed unfortunate for a Welfare State like ours,” he said. In this context, he pointed out the State Government’s micro-finance to SHGs at the rate of 20% or below and the Venture Capital Fund Scheme in the offing for helping new entrepreneurs coming up with innovative ideas.

Shri Gogoi also pleaded with Union Minister Finance to issue clear directives to banks to adopt a uniform policy applicable to all States so far as payment and rate of service charge to banks for handling NREGA payments are concerned. “Similar uniform policy may be adopted in respect of other such Central and State programmes also,” he pointed out.

Pointing out the imperative need for long term credit to farmers, Shri Gogoi requested the Union Finance Minister to implement the scheme for revival of the Long Term Cooperative Credit Structure in Assam as soon as possible.

NATIONAL SAMPLE SURVEY FROM JULY NEXT  

DISPUR, JUNE 14 : The 67 th round National Sample Survey on non-agricultural enterprises covering three major sectors namely manufacturing, trade and other services will commence from July next and will continue till June, 2011.

Inaugurating the three days regional training conference to train up the field investigators for this nation wide integrated large scale sample survey at Dispur on June 14, Director of Economics and Statistics Prafulla Das stressed on the quality of data collection as these are used to generate information and statistical indicators on diverse socio-economic aspects of the country.

Highlighting the importance of survey, Deputy Director General of National Sample Survey Office (NSSO) Siladitya Chaudhury said that the Database of National Sample Survey is used to estimate GDP and its growth of unorganized sector of Indian economy and this database is a source for planning and policy making of the country.

ZAT
14-06-10

Inaugural Session of RTC

Dispur, June 11 : The National Sample Survey Organisation, Govt. of India is going to conduct Nation wide 67 th Round Socio Economic Survey from July 2010 to June 2011. The said round of National Sample Survey is devoted exclusively for collection of Data on economic and operational characteristics of unincorporated non-agricultural enterprises in manufacturing, trade and other service sector.

In this connection, Regional Training Conference of 67 th Round Socio-Economic survey will be held in Guwahati from June 14 th to 16 th, 2010.

ZAT

11.6.10

FOR INFORMATION TO ALL MEDIA PERSONS

The Regional Training Conference (RTC) of Socio Economic Survey 67 th Round will be held in the Conference Hall at 7 th Floor, Central Block of Housefed Complex from 14.6.10 to 16.6.10.

The inaugural session of the said RTC will be held on 14.6.10 at 10 AM.

All the Media Persons based at Guwahati are requested to make it convenient to attend and cover the said inaugural session.

-- Janasanyog

SUMMARY REVISION OF ELECTORAL ROLL

DISPUR, JUNE 10 : The Election Commission of India has announced the schedule for Summary Revision of Electoral Rolls, 2010 with 01-01-2010 as qualifying date for the state of Assam. As per the schedule draft publication of the electoral roll will be done on 20-07-2010 (Tuesday). Period for filing of claims and objection will be from 20-07-2010 to 10-08-2010 (Tuesday) and disposal of claims and objections will be completed by 25-08-2010 (Wednesday). The printing of supplements by 09-09-2010 (Thursday) and the final publication of Revised Electoral Roll will be done on 15-09-2010 (Wednesday).

CM condoles death of eminent educationist Ramcharan Das

Dispur, June 9: Chief Minister Shri Tarun Gogoi today mourned the death of eminent educationist and social worker Ramcharan Das, who passed away at the Gauhati Medical College Hospital yesterday.

In a condolence message, Shri Gogoi said that with the passing away of Das, the State has lost a multifaceted personality imbued with the spirit of Gandhian ideology. “His death is a great loss to the State”, he said.

CM mourns death of noted journalist Gauri Shankar Kalita

Dispur, June 9: Chief Minister Shri Tarun Gogoi today expressed his deep shock and profound sorrow at the sudden demise of noted journalist, Gauri Shankar Kalita, who passed away this morning.

In a condolence message, Shri Gogoi said that Kalita during his long chequered career as a journalist and later as an editor had raised the key issues facing the State and put them in proper perspectives. “Kalita had an in-depth knowledge and understanding of the problems plaguing the State and the region and created public opinion through his writings. The void created by his death will be hard to fill,” he said.

The Chief Minister conveyed his heartfelt condolences to the bereaved family and prayed for eternal peace of the departed soul.

SN/9.6.10