Dimapur: The Nagaland government has launched the annual credit plan for the financial year 2024-25, increasing the credit flow to priority sectors from Rs 1,058 crore to Rs 2,003 crore.
Chief Minister Neiphiu Rio launched the credit plan at Noune Resort in Chumoukedima district on Friday evening.
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Speaking to media persons on the sidelines of the credit plan launch, Chief Secretary J Alam said the increase in credit flow was intended to ensure that critical sectors such as agriculture and small enterprises receive the necessary financial support to drive development.
“These measures were taken as course correction measures to ensure flow of credit to priority sectors,” he said.
Alam said the credit flow target for entrepreneurship was increased from Rs 340 crore to Rs 1,137 crore for the current financial year.
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“This target demonstrates the state’s commitment to expanding financial resources and stimulating economic growth across various sectors,” he added.
To address concerns related to non-performing assets and the hesitation of banks to extend loans to deserving entrepreneurs in the state, Alam said the government would provide collateral-free coverage for loans up to Rs 50 lakh per beneficiary through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
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“This initiative will aim to reduce the financial risk for banks and encourage more lending to businesses and individuals while relieving the beneficiary of the need for any third-party collateral,” he said.
“Once the loan is covered under the CGTMSE and in case, an entrepreneur is not able to pay back the loan due to genuine reasons like business failure, the CGTMSE will be making the payment to the banks up to 85 per cent of the pending loan amount,” he informed.
Highlighting the Chief Minister’s Micro Finance Initiative (CMMFI), Alam said the revision of the CMMFI aims to streamline the flow of funds to the public, making it easier for the beneficiaries to access financial resources and address the concerns related to fund flow inefficiencies.
The Chief Secretary also briefed on the establishment of a finance department monitoring cell, deployment of credit managers and coordinators in each district, and partnership with private vendors.
He also spoke on building a robust insurance ecosystem in digital piggery insurance scheme with Tata AIG, and accidental insurance for police personnel and the Chief Minister’s Life Insurance Scheme.