Technology Development Fund to be constituted

By Our Special Correspondent

BANGALORE, JUNE 25. The constitution of a technology development fund will be part of the new industrial policy of the Government, Mr.N.Vishwanathan, Additional Chief Secretary to Government and Development Commissioner has said. The Government is in the process of formulating a new industrial policy, (which touches the aspect of protecting the small scale sector) which will come up for discussion at the next meeting of the Cabinet, he added.

Speaking at the 78th meeting of the State-level Bankers' Committee (SLBC), here today, Mr.Vishwanathan referred to the decline in the member of bank branches, thanks to shortage of staff after the voluntary retirement scheme was introduced. He said this trend should not develop in rural areas. Instead, he said the banks should open more rural branches as he was confident that the financial activity in the rural areas would increase in the years to come.

Mr.Vishwanathan explained the steps taken by the Government to protect the interests of farmers. He said it was proposed to suggest a project to the World Bank for poverty alleviation, which would involve the banking sector in a big way.

Mr.K.Vijayaraghavan, Regional Director, Reserve Bank of India (RBI), stressed the role of small-scale industries, which was as important as agriculture. He said efforts should be made to increase lending to this sector.

Referring to a RBI study which revealed that women were prompt in repayment of loans, Mr.Vijayaraghavan said the banks would do well to increase credit allocations to women entrepreneurs.

The Chief General Manager, NABARD, Mr.S.M.Mehta, referred to the good work done by the Raichur District Co-operative Bank, whose working had been brought to a sound level with the efforts of all concerned including NABARD. He said he wanted this programme to be implemented in districts such as Gulbarga, Bangalore and so on.

Presiding over the meeting, Mr.D.T.Pai, Chairman and Managing Director of the Syndicate Bank, who was also the Chairman of the SLBC, said lending to farmers through the Kisan Credit Cards to meet the expenses of seasonal agricultural operations, was being encouraged in view of the advantages to the farmers.

He said commercial, co-operative and regional rural banks had issued 5.97 kisan credit cards in 2000-2001 against a target of 4.98 lakhs cards with a credit limit of Rs.1,691 crores.

Referring to the slump in the prices of coffee in the international and domestic markets, Mr.Pai said at the instance of the RBI, a special SLBC meeting had decided to introduce rehabilitation package for rescheduling all eligible coffee crop loans and term loans on priority, and to extend fresh crop loans in the coffee-growing districts of Kodagu, Chikmagalur and Hassan.

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