Karnataka, Feb 2 (KNN) NABARD Chief General Manager, T Ramesh, disclosed that the priority sector lending potential in Karnataka for the financial year 2024-25 is poised to reach an impressive Rs 3.97 lakh crore, during the State Credit Seminar.

This projection reflects a substantial 10.67 percent increase compared to the previous year.

The credit potential encompasses three key sectors: agriculture, micro, small, and medium enterprises (MSME), and other priority sectors.

Notably, the agriculture sector, encompassing agri-infrastructure and ancillary activities, holds a substantial share of Rs 1.85 lakh crore.

Following closely is the MSME sector, contributing Rs 1.58 lakh crore, with other priority sector activities accounting for Rs 0.54 lakh crore.

In response to the severe drought situation, NABARD has actively supported the State government's initiatives by providing financial assistance.

A significant amount of Rs 990 crore has been allocated for 119 irrigation projects, and Rs 611 crore has been sanctioned for drinking water projects under the Rural Infrastructure Development Fund.

Furthermore, Rs 290 crore has been earmarked under the Micro Irrigation Fund to promote sustainable irrigation practices in the ongoing year, as highlighted by Ramesh.

(KNN Bureau)