NABARD hosts Annual State Credit Seminar in Shimla with focus on private investment, MSME growth

Chief Secretary Prabodh Saxena also participated in the event and, while speaking to the media, emphasised the significance of private investment in driving the state's development.

He said, "A country cannot progress solely on public investment. It is a private investment that opens up new avenues of growth. If private investment comes, it will undoubtedly increase Himachal Pradesh's resources."

Saxena lauded NABARD as a key partner in the state's progress and said, "NABARD has been an essential ally and robust support for Himachal Pradesh, particularly in the priority sector and agriculture. Beyond these, there has been significant credit flow, which, when combined, creates impressive numbers."

While discussing private investment, Saxena clarified, "This does not mean setting up factories everywhere. For instance, logistics costs in areas like Kinnaur are prohibitive. Instead, we need investments in diverse areas like homestays, MSMEs, and hydro projects.

"Such targeted investment will enhance resources without necessarily reducing debt immediately. Growth should be multi-faceted, covering manufacturing, agriculture, and other sectors," Saxena added.

Expressing the government's willingness to support initiatives that boost private investment, he said, "Every step that encourages private investment in the state will be considered by the government."

Elaborating on the NABARD's Vision for Himachal Pradesh, Vivek Pathania, NABARD's regional Chief General Manager, outlined the objectives of the Annual State Credit Seminar.

"This seminar is aimed at planning next year's credit limits for banks. We map the availability of infrastructure and potential at the district level, consolidate it at the state level, and provide banks with targets for credit disbursement. For the 2025-26 financial year, we have discussed a credit plan of Rs 41,422.43 crore, which is a 22 per cent growth compared to last year," he said.

Pathania highlighted the state's focus on MSMEs and non-farm sectors, and said, "As the Chief Secretary also mentioned, we need to focus on these sectors to encourage self-employment. This year, we have allocated 50 per cent of the total outlay to the MSME sector to support the state's youth and foster self-reliance."

NABARD has played a pivotal role in providing both financial and non-financial support.

Pathania elaborated, "In the financial sector, we provide concessional funds to cooperative and rural banks. This year, we have disbursed approximately Rs 2,200 crore at an interest rate of 4 per cent to banks. Additionally, we collaborate with the state government on infrastructure projects like roads, bridges, and irrigation, offering construction funding at 5.25 per cent interest. This year, Rs 903 crore has been sanctioned, including Rs 200 crore for a milk plant project and Rs 110 crore for electric vehicle charging stations to be implemented by Himachal Tourism Corporation (HTC)."

Pathania highlighted two new initiatives introduced this year, milk plant projects and EV charging stations and said these steps reflect NABARD's commitment to diversifying its investments and addressing the evolving needs of the state. (ANI)