New Delhi, Nov 16: Chief Minister, Omar Abdullah Friday demanded “extraordinary schemes for special category states to address their problems.
 “The special category states like Jammu and Kashmir share inherent problems of inadequate and costly communication network, hostile climate conditions and adverse topography”, he said, adding that the special problems confronting these states require special focus.
 Addressing a conference of Chief Ministers of North Zone States convened by Union Finance Ministry, here, the Chief Minister said that measures ensuring inclusive development and proactive role by the Banking Institutions towards achieving this goal along with other steps by the Union Government can go a long way in ensuring redressal of chronic backwardness issues of the states like J&K.
 Omar suggested a separate meeting of Union Finance Minister with the Special Category States exclusively to ensure their fuller inclusion in the economic development process of the Nation. “Even within the states of North Region to which today’s conference seeks to address, the progress on the listed agenda is widely uneven. I wish Union Finance Minister would consider calling a separate meeting exclusively for the special category states to ensure their fuller inclusion in the economic development process of the Nation”, he said.
 The Chief Minister said that financing institutions, though working under the discipline of RBI, are primarily driven by market demands, profit motives, ease of options and concern for security of their investment. “This obvious truth is reflected in more than 100 percent CD ratio in economically advanced states while it remains very low in the states like Jammu and Kashmir. This is a worrisome issue and puts the operations of other public sector and private banks in a poorer light”, he maintained and stressed the need for improving the CD ratio particularly in agriculture, industrial, trade and MSME sectors.
 Highlighting the importance of full realization of Corporate Social Responsibility (CSR) of the Corporate Sector particularly the banking industry, the Chief Minister underscored the need for re-structuring of the mechanism in this regard and improving the delivery of CSR particularly in the areas where banking CD ratio is low.
 “Banking sector should be made to invest more out of its CSR funds in the areas where its CD ratio is not improving”, he added.
 Omar presented resume of the measures and reforms his government has initiated to upgrade and improve agricultural practices and make necessary dent in the growth and development of agro-based economy and said that agriculture credit flow possesses key in ensuring balanced and sustained development in agriculture, horticulture and allied sectors and allied sectors.
 He said that though the overall flow of institutional credit has increased over the years yet there is need to address the gaps in the system to ensure adequate credit flow to small and marginal farmers.
 The Chief Minister said that Jammu and Kashmir State Level Bankers’ Committee (SLBC) has been informed that annual credit plan for the current financial year envisages a total credit flow of Rs. 5788 crore in the State to target 331499 beneficiaries and aim at achieving 40 percent credit deposit ratio in the State by March 2013.
 He said that revised guidelines have been issued by NABARD to the banks to make institutional credit flow for crop production and investment activities hassle-free and more farm-friendly.

Lastupdate on : Fri, 16 Nov 2012 21:30:00 Makkah time
Lastupdate on : Fri, 16 Nov 2012 18:30:00 GMT
Lastupdate on : Sat, 17 Nov 2012 00:00:00 IST