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AP cries for funds, but does not utilise them: bank officials

The National Bank for Agriculture and Rural Development yesterday threatened that it would stop further financial assistance to Andhra Pradesh if the sanctioned projects were not completed on time.

Though the state government has been ''crying for funds to complete the ongoing irrigation, roads and bridge works'', it was not able to utilise the sanctioned funds.

This was disclosed to the media at Dhowleswaram, near Rajahmundry, by NABARD Andhra Pradesh region chief general manager V Jalama Rao and engineering consultant P Sitapati Rao.

They said the projects proposed by the state government would be appraised, and loans sanctioned after stipulating time-limit for each project.

They said NABARD had extended loans worth Rs 4.83 billion since 1995-96 for 183 projects. But the state government had so far completed only 35 projects and reimbursed only Rs 1.79 billion, indicating poor utilisation of the funds.

The reasons given by the state government like delay in acquisition of land, lack of infrastructure and finalising tenders were not convincing, they said.

Jalama Rao pointed out that NABARD had extended loans worth Rs 2.07 billion to two major, 10 medium, 48 minor and 14 lift irrigation projects under the Rural Infrastructure Development Fund Scheme-I in 1995-96. But the state government had completed only 23 projects, he said. All these projects, slated for completion by March this year, would irrigate an additional area of 98,000 hectares.

UNI

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