Telangana's Credit Potential Under Priority Sector Put at Rs 3.86 Lakh Crore

Hyderabad: Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the portfolios of finance, planning and energy, released the state focus paper 2025-26 brought out by the National Bank for Agriculture and Rural Development (Nabard) here on Friday.

The paper pegged the credit potential under priority sector for the state at Rs 3.86 lakh crore, which marks a 37.08 per cent growth over the previous year.

Nabard’s state focus paper guides bankers in formulating the annual credit plan by identifying sector-wise potential, infrastructure needs, and policy issues.

Addressing the meeting, Bhatti said, “Telangana is one of the fastest growing states with Rs 15.2 lakh crore GSDP, with a growth rate of 14.5 percent. The state’s annual per capita income is Rs 3.56 lakh. Bankers should strive to realise the projected figures for the benefit of our rural communities.”

He said he favoured water-efficient farming. “The previous government had neglected drip irrigation and usage of sprinklers. Nabard should provide impetus to them. The bank should collaborate with the tribal department and encourage cultivation of bamboo, avocado and oil palm on the lands given to tribals under the Forest Rights Act,” Bhatti said.

Organic farming should be encouraged through Indira Kranthu Pathakams (IKP) as the produce has huge export potential. There is a need to emulate the Maharashtra example, which branded Alphonso mangoes, he said. The allocation of Rs 570 crore for solar pump sets fell short as there was a need to install 29 lakh motors in the state, he said.

Speaking on the occasion, Agriculture Minister Tummala Nageswara Rao noted that the state government reimbursed Rs 40,000 crore to banks that had waived farm loans. “Officials should refrain from taking actions that are an insult to farmers like the removal of a gate from a farmer’s house for failing to repay debts,” he said. “Such actions invite criticism.”

He noted that the monkey menace was coming in the way of diversification to horticulture crops and asked Nabard to support the erection of solar fencing to keep away simians. He also noted that at least 25 per cent of the land was conducive for oil palm cultivation and sought support for the same.

B. Uday Bhaskar, chief general manager, of Nabard Telangana regional office, said that Telangana was the fastest growing state with per capita income 1.6 times more than the national average of Rs 2.12 lakh, a leader in rice production contributing 12 per cent to the nation’s output, ranked third in poultry production and fourth in meat. The state also boasts the highest per-capita meat availability at 29.21 kg. He assured that Nabard would continue to work in close coordination and cooperation with the state government to achieve the common goal of agriculture and rural development.

The total credit potential estimated for agriculture is Rs 1.63 lakh crore comprising of crop loan of Rs 0.87 lakh crore, working capital for agri-allied activities of Rs 0.07 lakh crore and agriculture and allied term credit of Rs 0.69 lakh crore.

The assessment of credit potential for MSME and other priority sectors is Rs 2.03 lakh crore and Rs 0.19 lakh crore, respectively.

Senior officials and bankers, including M. Raghunandan Rao, Sandeep Kumar Sultania, M. Ravinder Rao, M. Kodanda Reddy, Anuj Ranjan and Prakash Chandra Baror spoke on the occasion.