Rajan assures of looking into suggestions put forth by Govt

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SRINAGAR, MAY 29: Calling for the need of providing incentives for promotion of entrepreneurial spirit and revival of the flood ravaged economy of the State, Minister for Finance, Labour, Employment and Culture, Dr. Haseeb A Drabu said that such efforts would give an impetus to the economy of the State.

The Minister was speaking at an interactive programme organized for the Governor of Reserve Bank of India, Dr. Raghuram Rajan.

Chief Secretary, Mr. Iqbal Khandey, Financial Commissioner, Industries and Commerce, Mr. Khurshid Ahmed Ganai, Principal Secretary to Chief Minister, Mr. B. B. Vyas and Administrative Secretaries of different departments were also present.  

Dr. Drabu while pitching for declaring all the lending in J&K as priority sector lending for one year said that financial debt relief in the form of waivers/write offs should qualify as CSR expenditure. He further added that Ministry of Finance be requested to subsidize rate of interest on all rehabilitation and reconstruction lending of Commercial Banks.

“Specific relief package be given for existing KCC barrows, one time waiver of Rs. One lakh would benefit 8 lakh farmer family and all farm lending be converted into KCC lending, same to be done for ACC lending”, Dr. Drabu added.

The Minister said that there is a need to move away from asset based or financial statement based lending and called for putting in place a mechanism by which banks can lower the rate of interest on the loans taken for developmental activities in the State so that the pace of development of state can be accelerated.

For the post flood management scenario in the State, Dr. Drabu spelled out a 5-R programme of restoration of livelihoods, reconstruction of public infrastructure, revival of business, rebuilding flood management systems in the State and re-developing J&K as the sustainable State.

The Governor, Reserve Bank of India (RBI), Dr. Raghuram Rajan while interacting with the officers highlighted the core areas including tourism which need special focus and attention so that it can be promoted in a big way and the economy of the State gets the required fillip. He also called for digitization of the land record which he said would expand the credit flow substantially.

Dr. Rajan said that many good small industries got affected due to floods and focus should be on these healthy sick industries rather than focusing on unhealthy sick industries. He said Agricultural Infrastructure and marketing also needs to be strengthened in the State to boost the local economy.

“All the suggestions and requests put forth by the government would be explored”, Dr. Rajan said.

Financial Commissioner, Industries and Commerce, Mr. Khurshid Ahmed Ganai also spoke on the occasion and spelled out the measures needed to be taken for putting the industrial scenario of the flood hit valley and other parts of Jammu division back on the rails by providing the necessary incentives.

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